Chennai: Indian hotel startup Oyo has bought local co-working venture Innov8 as part of its entry into commercial real estate business under the brand name Oyo Workspaces.
Though the company did not disclose the deal size, sources said that it could be a $30 million all-stock deal.
At the time of launch, Oyo Workspaces will have 21 workspaces, with 15,000 seats across 10 cities in India. Of these, Innov8 is currently spread across 6 cities of Delhi, Noida, Gurgaon Bengaluru, Chandigarh and Mumbai, with 16 centres hosting over 6,000 employees of brands like Swiggy, Paytm, Pepsi, Nykaa, OLX, Lenskart, amongst others. Powerstation has one centre in Gurgaon with over a 1,000 seats and Workflo has set up 4 centres across NCR, Hyderabad and Bangalore with a hosting capacity of over 1,500 seats already.
Oyo Workspaces aims to expand its presence to over 50 centres across India by the end of 2019. Oyo will directly compete with WeWork, which is also backed by SoftBank.
Gurugram-headquartered Oyo said it would offer three options of co-working real estate in the upper-mid scale, mid scale and economy categories.
Innov8 offers upmarket shared workspaces, where a private office costs as high as Rs 64,999 a month and a desk is sold for Rs 9,999 per month. However, Oyo is offering introductory price points of Rs 7,999 and Rs 6,999 per seat respectively.
