OYO has been on an expansion spree globally as well as locally. While the SoftBank-backed firm has been expanding its core hospitality business in various overseas markets, it’s making debuts in several segments such as event management, co-living, foodtech, and co-working in India.
Amidst finalising the deal with coworking space provider Innov8, OYO is launching its own mid-scale coworking brand, PowerStation. According to Entrackr’s sources, the company will be opening up multiple centres in Delhi (NCR) and Bengaluru over the next 6 months.
“OYO’s first centre is a 500 seater property in Pioneer Park, Golf Course Extension Road (Sector 61) in Gurugram,” said two companies that have reserved space for their employees. Sources requested anonymity as they don’t want to be identified.
PowerStation by OYO is offering customised services, private offices, and virtual working spaces.
Entrackr has also confirmed the presence of the property in Gurugram independently. We spotted PowerStation branding in Pioneer Park that says it’s launching soon.
Four weeks ago, Entrackr had exclusively reported that OYO is in advanced talk to acquire Innov8. “Team Innov8 has been driving the coworking vertical for OYO,” outlined one of the above sources.
An email query to OYO didn’t receive any response until the publication of this story.
OYO’s debut in coworking has come just after its entry into foodtech business. On last Monday, Entrackr had exclusively reported that the firm entered consumer-facing food business by launching 20 cloud kitchens. It’s leveraging aggregators including Swiggy, Zomato, and UberEats for raking in demand.
Interestingly, another SoftBank-backed venture WeWork is one of the largest coworking space providers in India. With PowerStation, OYO would be the direct competitor for WeWork, CoWorks, Awfis, 91 Springboards among several others.
While the addition of seemingly aligned segments for OYO in the Indian market appear lucrative, experts express concern that the firm is diluting focus from its core business in the local market. On the contrary, OYO tends to believe that all these businesses (except foodtech) as real-estate leasing. And, it’s good at it.
Till what extent the Ritesh Agarwal led company can succeed in its ambitions with different businesses lines is something that remains to be seen for several years from now.