Budget hotel aggregator OYO commonly known as OYO Rooms is planning to dive into coworking business after successfully securing its brand position in the market. To enter into this business, it will be purchasing a coworking company in India by the name Innov8.
Currently, Innov8 has its presence in four cities in India and is thriving rapidly. Talking about OYO, it is just a five-year-old startup which has witnessed steady progress. In 2017, OYO had launched operations in China which turned out be a great success for the firm. It had invested an amount of $800 million which was funded by SoftBank to expand its business outside India, especially China. After that, this hospitality company entered into long-term housing rentals by the name OYO Living, providing shared accommodations at affordable rates. It is said to operate across more than 35 properties based in Noida, Gurugram, Bengaluru, and Pune.
Facing and conquering new challenges, Ritesh Agarwal, the chief executive of OYO is all set to venture on the new terrain of coworking. By acquiring Innov8, the company will be able to mark its presence in the real estate industry with an already established name. The exchange of business talks between the two owners has been going on for months and has finally reached its last stage. The announcement regarding the company’s accession of Innov8 will be officially announced next month. Innov8 coworking is a competitor of Awfis in India.
Over the years, OYO has purchased different firms including WeddingZ, AblePlus and SilverKey. All these acquisitions have benefited the company and strengthened its foothold in the different market segments.
Innov8 operates in 13 workspaces located in Delhi, Mumbai, Chandigarh and Bangalore. The company had raised $4 Mn in pre-Series A round led by Credence Family Office which would be used to establish its footprint in other cities. Right now the company has built a community of 4000 members and offers services like a hot desk, dedicated desk, virtual office, and private office. Providing premium workspaces, Innov8 has been competing with some of the biggest names like WeWork, BHive, 91Springboard, and others.
OYO’s plan to join the coworking market doesn’t come as a surprise as Ritesh is known for experimenting with new ideas. As the trend of shared workspaces is increasing, more people are recognizing the benefits of working in a collaborative environment. By infusing the idea of coworking in its already established business of hotels, OYO will provide people with a place to live and work as well. This might prove as a great development. With innovation as its slogan, OYO might grow to be the most successful startup by the end of 2023.
Also check out: WeWork is now moving into residential spaces.