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Oyo Rooms to acquire Zo Rooms in all-stock deal

  • Oyo
    Rooms is close to extending its dominance in the budget hotel market by
    snapping up its main rival Zo Rooms in an all-stock deal, three people aware of
    the transaction told the
    Economic Times.
  •  
  • The
    deal, structured as an asset sale, will give ZoRoom’s seven founders and

    • Oyo
      Rooms is close to extending its dominance in the budget hotel market by
      snapping up its main rival Zo Rooms in an all-stock deal, three people aware of
      the transaction told the
      Economic Times.
    •  
    • 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. The sale comes after Zo Rooms was unable to raise
      fresh capital from investors.
    •  
    • Zo’s
      assets include its technology and a network of 11,000 rooms in 1,000 hotels
      across more than 50 cities and towns in India, which will give Oyo more
      muscle to hold its place against the new startups, and larger online travel
      companies that have entered the hotel aggregation market, the report said.
    •  
    • About
      40% of Zo’s employees will be absorbed by Oyo, and the deal is likely to be
      closed in two weeks.
    •  
    • The
      Oyo-Zo transaction signals potential for more aggressive consolidation in India’s
      consumer internet sector, where startups chasing big markets with aggressive
      discounting are starting to run out of money as investors flock to the most
      dominant of them, according to the
      ET
      report.

     

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