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.
Founded by Ritesh Agarwal (aged 19 years then) in 2012, OYO claims to be India’s largest branded network of hotels spread across 152 cities with more than 3000 hotels.
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.
About one third of our customers come back to us to stay again, a number much higher for the hospitality industry that otherwise also runs detailed loyalty programs.
Adding to Delhi summer, there was a lot of heat at the event launch venue, India Habitat Centre Delhi where the guests were greeted with interesting Signboards and Standees from Zo Rooms (Zostel’s budget hotel aggregation wing).
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.
OYORooms books 45,000 room nights per month.