The long speculate deal of Oyo Rooms obtaining Zo Rooms has finally materialized. SoftBank, which joined in a $100 million round of funding in Oyo Rooms a year ago, announcing the acquisition without specifying the deal value.
Softbank Confirms Zo Room’s Acquisition By Oyo
According to sources, Oyo has procured Zo in an all-stock arrangement. The founders of Zostel Hospitality Pvt. Ltd, which runs Zo Rooms, and investors will get a 7% stake in the combined entity. Both the website and app of Zo Rooms had encountered a downtime of more than 24 hours on Wednesday.
The person stated above said that taking a looking at the market scenario, its existing investors are not excited about expanding ventures with Zo rooms which has driven the organization to seek for more avenues.
While Zo Room’s authors will draw near to a 2.5% stake, the rest will be held by Tiger Global Management LLC, Orios Venture Partners, angel investors Zishaan Hayath and Mato Peric, ex-overseeing executive at Rocket Internet, among others. Tiger-sponsored ZO rooms has raised about $ 47 million and had battled as of late to raise another round.
The release added that the period also saw, “procurement of Zo Rooms”, without giving subtle elements.
The deal has been speculated since December, yet it seems to have been confirmed by OYO Rooms speculator SoftBank, which listed the transactions in the most recent financial report issued today. The rumours of the anticipate deal began in December past year. Oyo declined to commont on this.
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