OYO’s acquisition of rival ZO Rooms confirmed.
By Pranbihanga Borpuzari, ET Bureau | 10 Feb, 2016, 11.13 PM IST.
In a consolidation of business in the hotel aggregation segment, OYO Rooms has acquired its rival Delhi-based ZO rooms. There is no official statement, but OYO’s investor Softbank has confirmed in an earning presentation earlier today that the deal is through.
Earlier in the day the ZO Rooms website and app had stopped functioning, sparking rumors that the deal has gone been clinched. At the moment both the site and the app is functioning normally.
In August 2015, SoftBank, Sequoia Capital, Lightspeed Ventures and Green Oaks capital, invested $ 100 million in OYO Rooms, that catapulted it to the big league. Tiger-backed ZO rooms has raised about $ 47 million and had struggled recently to raise another round.
According to an earlier ET article, the deal, structured as an asset sale, will give ZoRoom’s seven founders and investors including Tiger Global a combined 7% stake in India’s largest budget hotel aggregator.
Softbank and OYO have been approached and their reaction is awaited.