Diversifying from the hotel and long-term lodging business to co-working spaces, Ritesh Agarwal led OYO Hotels and Homes has acquired Innov8, according to sources close to the firm.
Sources said OYO, which has more than $1.1 billion in its balance sheet, spent between ~150 crore and ~200 crore for the acquisition.
OYO aims to open more than 35 new co-working spaces in major metropolitans over the next one year, according to sources. OYO has also started two new co-working brands—PowerStation and WorkFlo, which will cater to a variety of start-ups and companies.
Similar to the hotel and long-term accommodation space, OYO plans to provide affordable office and workstation spaces. The SoftBank-backed company has already made an expansion plan for the whole year.
The company has also hired all Innov8 employees and will continue as a separate brand. It has presence across four cities and has over 13 centres. OYO’s partnership with Innov8 will combine its capabilities of asset management and technology with the scale and real estate expertise of the co-working firm in the sphere of managed workspaces.
Its new brand PowerStation is aimed at clients whose team sizes are growing and want “managed workspaces” in emerging business districts. Sources have told Business Standard that the first 1,000-plus-seater PowerStation centre is going live in the Pioneer Square complex on the Golf Course Extension Road. Pioneer Square is home to firms such as Pepsi, Sun Life, and many others. It is also developing as the premier mixed use commercial complex in the hottest emerging area in Gurugram.
WorkFlo aims to transform regional offices, sales offices, customer support centres, and growing start-ups that want affordable options. It is also for enterprises that are seeking multi-city solutions — budget-friendly, and functional.
The company would be competing with the likes of co-working giants such as WeWork, which is currently in more than 287 physical locations in 77 cities and 23 countries around the world.
The company has been expanding rapidly in India and is one of the biggest co-working space providers in the country.
Globally, OYO is present in 10 countries, over 500 cities and hosts millions of guests in over 18,000 hotels and homes in over 515,000 rooms. The company’s sales run-rate in December ended at $1.8 billion, growing roughly at 4.3X year on year.