After 50 days of Entrackr’s exclusive report, OYO has finally announced the acquisition of coworking firm Innov8 in an all-cash deal. According to an email sent to OYO employees by Rohit Kapoor, Chief Executive Officer of new real estate businesses, the company will be opening up several centers under brand names – PowerStation and WorkFlo.
While PowerStation would be catering to corporates and large enterprises, WorkFlo will focus on startups, customer support and sales unit of mid-sized companies. Entrackr has accessed the email sent by Kapoor to the employees.
Entrackr had exclusively reported last month about OYO is opening up 1,000 plus seater PowerStation centre in Pioneer Square complex on the Golf Course Extension Road.
Instead of killing Innov8 brand, OYO would support it in its independent functions and the process of launching more centres.
With this acquisition of Innov8 and announcement of two coworking brands – WorkStation and WorkFlo, OYO would be competing with WeWork, Coworks and Awfis amongst several others.
After expanding into the aforementioned segments, the Ritesh Agarwal-led company has turned into a full stack real estate leasing company.
Last year, the firm had launched OYO Living (now OYO Life). Entrackr exclusively reported it in June 2018. Innov8 is the fourth acquisition for the SoftBank-backed company. Previously, it acquired Weddingz, AblePlus and Novascotia Boutique Homes (now known as SilverKey).
In September last year, OYO had scooped up $800 million round from SoftBank for comprehensive expansion in India and outside, especially China. Two months later, it raised a $103 million strategic capital from Singapore-based ride-hailing major Grab.
Recently, the Gurugram-based company had announced to inject Rs 1,400 crore in the ongoing calendar year. It’s also launching an upscale hotel brand – Collection O. Currently, it has 12 hotels which it wants to have 650 properties by the end of the current calendar year.