Oyo : Zo Rooms Deal Almost Done

Zo Rooms is laying off its staff in big numbers today (except tech and call-center employees). OYO last raised $100mn led by Softbank while ZoRooms’ raised $30mn funding from Tiger global. Both of these companies are trying to raise another round, but consolidation will help them raise faster.

Oyo is in final stages to acquire its competitor, Zo Rooms.

Sources tell us that the deal is done and Zo Rooms is laying off its staff in big numbers  (except tech and call-center employees).*

Both Zo and Oyo rooms have done almost similar revenue numbers in FY14-15, but the biggest factor that tilts the equation towards OYO is..well, the massive funding it has raised.

OYORooms Vs ZoRooms
How OYO Was Trolled By ZoRooms During Their App Launch

OYO last raised $100mn led by Softbank while ZoRooms’ raised $30mn funding from Tiger global. Both of these companies are trying to raise another round – so we are guessing that the consolidated entity will raise a bigger round to combat the growing competition.

From what we know, Zo rooms has laid off its employees in all departments except tech and call-center*.

*Update : Zo Rooms has written to us that there are no layoffs being done in the company.

Sign Up for NextBigWhat Newsletter

Daily.

You May Also Like

Cisco Acquires Tropo To Boost It’s Collaboration As-A-Service Offering

The goal of the move is to help customers create communication services without a lot of development. While Tropo already has over 200,000 developers, Cisco’s aim is to expand the developer network, become a cloud collaboration player, and an applications provider. Cisco has been putting effort to break apart its software and hardware streams, in order to license its software and open up an additional revenue stream. The Tropo acquisition is in line with that.

Tech Mahindra Enters Wallet Business ; Launches MoboMoney

MoboMoney is a NFC based payment system which can be used to Tap n Pay on a network of NFC enabled Merchant POS. MoboMoney enables customers to transact at 1,000+ retail stores for over the counter payments or for electricity bills/ recharges etc.Mahindra aims to bring 1mn partners over the next 5 years.