Oyo, one of the India’s largest hospitality companies is likely to acquire the co-working space firm Innov8. Reportedly, the ‘all cash’ deal is worth around 200 crore.
As per the sources, Oyo was on a lookout for deals in the co-working space from quite some time, at the behest of SoftBank. “It’s an all-cash deal pegged around Rs 200 crore. Oyo is looking at co-living and co-working opportunities. That has been the mandate from SoftBank. It sounds like a feasible arrangement for both, as Innov8 had also been looking at funding or similar buyout opportunities,” one person said.
An approximate amount of $1.16 billion was raised by Ritesh Agarwal, the founder of Oyo. He also attained $100 million from ride-hailing major Grab in the latest tranche of its ongoing $1-billion round.
Furthermore, Oyo is all geared to expand its operations abroad, starting with the countries like China. The company recently appointed seasoned aviation executive Aditya Ghosh as its first chief executive for India and South Asia.
Founded 4 years backs, Innov8 deals in co-working spaces and private offices for rent in the cities like Mumbai, Bengaluru, the NCR, and Chandigarh. It is supported by various renowned names like Rajan Anandan (the head of Google India), Vijay Shekhar Sharma (the founder of Paytm) and Girish Mathrubootham (the chief executive of Freshworks).
Talking about the deal, Ritesh Malik, the founder of Innov8, said, “This is speculation.”
“We are currently focused on our core business and looking at strengthening and deepening our presence in our home markets, India and China while expanding footprints across the globe, all with the goal of delivering high-quality experiences. While we already have a strong play in the real estate industry with Oyo Home, Oyo Living and also our Weddingz. We do not have any further announcements to make at the moment,” an Oyo spokesperson said.