Oyo Rooms has acquired Gurugram based co-working startup Innov8 in all cash deal worth about INR 220 Cr, according to sources familiar with the matter. Oyo and Innov8 have still not confirmed the news at the time of filing the story. As and when confirmation comes, it will mark Oyo’s entry into the co-working industry. A terrain that is completely alien for the SoftBank backed startup that has earned a market leadership position in the affordable hospitality market.
Post-acquisition, Innova8 will continue to operate as an independent brand under its new owner. Its founder Ritesh Malik will continue to spearhead the company that he had founded in 2015. At the time of acquisition, the Gurugram headquartered co-working company boasted nearly 15 coworking spaces across the country.
Sources claim that Oyo is planning to add 35 more co-working spaces to Innov8’s kitty by end of this year. Sources further claimed that SoftBank funded company has segregated two categories to target mid to budget category markets. These categories will be known as Workflo and PowerStation.
Innov8 till date may have raised only $4 Mn till date but boasts high profile investors like Paytm founder Vijay Shekhar Sharma and Freshdesk founder & CEO Girish Mathrubootham.
What Does Future hold for Oyo in Coworking Industry
Oyo will have to brace for some intense competition as some really big names are competing in this industry. The U.S. based co-working giant WeWork being the biggest among all. The other worthy competitors in this industry include 91springboard, Sequoia-backed Awfis.
Oyo’s decision to enter the co-working industry is sort of least surprising as it makes for a pretty wise business decision. The industry is been going through a boom period owing to the rise of startup ecosystem and freelancing community.
However, as mentioned above co-working marks a completely alien territory for Oyo but the company is hardly short of any funds to carry such lofty experimentations.