Oyo Rooms to acquire Zo Rooms in an all-stock deal

The deal will be an asset sale with Oyo giving 7 percent of combined stakes to Zo Room's seven founders and investors including Tiger Global. Oyo will not be taking any liabilities of Zo's previous debts.
Oyo Rooms

Finally the startup war between Oyo and Zo Rooms comes to an end with Oyo Rooms making the speculations of acquiring Zo Rooms true. India’s largest hotel network brand (surely after this news) Oyo Rooms is all set to acquire its immediate rival Zo Rooms in an all-stock deal.
The news comes after Zo Rooms was going through a difficult time in raising fresh capitals from investors. The deal will be an asset sale with Oyo giving 7 percent of combined stakes to Zo Room’s seven founders and investors including Tiger Global. Oyo will not be taking any liability of Zo’s previous debts.
Oyo will take over Zo’s assets including its technology and a wide network of 11,000 hotels in more than 50 cities and town of the country. This overtake will place Oyo way ahead against other startups and larger online travel agencies that have forayed into the space recently.
Till now nothing has been made official from founders or spokesperson from either company. None of them responded to our queries.
Oyo will retain 40 percent of Zo’s employees and all seven founders of the company will take exit post transition. The deal is likely to be closed within two weeks from now.
Both Oyo and ZO Rooms have done almost similar revenue numbers in FY14-15, but the biggest factor that tilts the equation towards OYO the massive $100 million funding it raised by Softbank while ZoRooms’ raised $30mn funding from Tiger Global. 

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