Budget hotel startup Oyo buys way into co-working business with $30 million investment
Oyo, India’s fastest growing budget hotel chain
To further grow its business, budget hotel brand Oyo now broke into the co-working domain by acquiring Innov8
Oyo, India’s most well-known budget hotel chain already has hotels in over 80 countries and recently expanded into the co-living space.
The company’s astounding success has convinced big-name investors such as Airbnb to contribute $1 billion to further Oyo’s growth.
This strong financial backing has helped Oyo branch out into another new domain – the rapidly growing realm of co-working spaces.
Launching Oyo Workspaces
Headquartered in Gurgaon, just outside of New Delhi, Oyo Workspaces is already present in 10 Indian cities and has over 20 centres serving more than 15,000 customers. Staff at companies like Siwggy, Paytm, Nykaa, Lenskart and Pepsi are already among their clients.
At a press conference in New Delhi, Rohit Kapoor, CEO of New Real Estate Businesses, revealed Oyo’s plans of running 50 Oyo Workspaces centres by December. For 2020, the company wants to become the largest co-working business in Asia.
To achieve these ambitious goals, Oyo has acquired Innova8 for $30 million, a co-working start-up with more than 200 employees in 16 locations. This makes Innova8 the third in-house brand at Oyo Workspaces.
Workflo and Powerstation make up the other two and are aimed at customers looking for a budget-friendly offering, while Innova8 is the premium option.
Growing India’s co-working scene
While the office and commercial real estate business in India is worth $30 billion, the co-working domain is still fairly new and ‘only’ worth $390 million as of now.
Through targeted investments, Mr Kapoor believes Oyo can grow this market all while becoming the industry leader ahead of competitors including established brands like GoHive, GoWork, Awfis and the global brand WeWork.
A competitive offering at Oyo Workspaces
To attract customers, Oyo Workspaces will offer several services across all centres. These include Wi-Fi, housekeeping, shared kitchen and dining spaces, storage and parking.
People signing up for monthly and quarterly passes currently have access to all this at heavily discounted rates designed to attract new customers and provide optimal value for money.
Let’s take a look at a few outstanding hotel projects in India:
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