Hospitality startup Oyo, which has now expanded its hotel chain business to over 80 countries and has also entered co-working segment, has bought local co-working venture Innov8, as the SoftBank-backed hospitality chain looks to venture into the commercial real estate business under the brand name Oyo Workspaces.
Though no official information on financials are disclosed, few media reports suggest that the Gurgaon -based Oyo will buy Innov8 for $30 million in an all-stock deal.
The acquisition comes at time when Oyo’s fellow SoftBank-backed co-working giant WeWork is gearing up for an IPO. The recntly launched co-working space unit if Oyo, ‘Oyo Workspaces’, was launched recently which will directly compete with WeWork in India.
The brand will open over 21 of its shared work spaces in more than 10 cities across the country and it plans to expand presence to over 50 centres by the end of 2019, according to a report on same by NDTV
Oyo said it would offer three options of co-working real estate in the upper-mid scale, mid-scale and economy categories.
OYO, which raised $1 billion last year from investors, including SoftBank and ride-hailing firm Grab, operates hotels in India, China, Britain, Dubai, Indonesia and Malaysia.
The company’s revenue jumped nearly three-fold in the last fiscal year, and it said it expects revenue to more than treble every year for the next five years, as it expands locally and in international markets.
New Delhi-based Innov8 offers upmarket shared workspaces, where a private office costs as high as Rs. 64,999 a month, while a desk is sold for Rs. 9,999 per month.
Besides being backed by VCs like LestVentures, Venture Catalysts, Innov8 counts many startup leaders as its independent angel investors which include Vijay Shekhar Sharma(Paytm), Rajan Anandan (Google), Kunal Shah(Freecharge/Snapdeal), Girish Mathrubhootham (Freshdesk), Punit Soni (Ex-Flipkart CPO), Anand Chandrasekeran (Facebook), Sunil Kalra (Via Projects), Utsav Somani (Angel List India), Vishal Gondal (GOQii), Vikram Limaye (IDFC Bank) and other investors. Co-founded by serial entrepreneurs and investors, Dr. Ritesh Malik and Shailesh Gupta, Innov8 provides shared workspaces, community and services to startups, freelancers, entrepreneurs and even divisions of large corporates.