oyorooms

ZO Rooms earlier raised $30mn led by Softbank. Both Oyo and Zo had similar revenues in FY14-15 (Zo: Rs. 2.6 crores, OYO: Rs. 2.4 crores), but Oyo has gained an edge owing to the massive funding ($100mn) they raised.

We earlier reported that OYO-Zo acquisition is almost in the final stage and from what we know, the deal is finalized and will be announced shortly.Both Oyo and Zo had similar revenues in FY14-15 (Zo: Rs. 2.6 crores, OYO: Rs. 2.4 crores), but Oyo has gained an edge owing to the massive funding ($100mn) they raised.

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.

Online travel agencies such as MakeMyTrip,Goibibo, Yatra have listed off the budget hotel aggregators Oyo and Zo Rooms’ properties. Oyo Rooms said that it was an expected move and online agencies only contribute 10% of their business while Zo Rooms expect to overcome the shortfall through their app.

The Delhi HC in its stay order banned Zostel from continuing with its budget hotel aggregation segment ‘Zo Rooms’ from using ‘confidential information and software’ of Oyo Rooms.