An announcement which was speculated since a bit of time and the talks were frequent in the Indian startup arena seems to have come. In the latest financial report issues by Softbank, the lead investor in Oyo Rooms, the deal finds a place, confirming the move by the biggest budget rooms aggregator in India.
Oyo Rooms has raised $125 million till date from investors such as Softbank and on the other hand, Zo Rooms is also well backed by investors like Tiger Global, with the latest funding round worth $32 Million.
Talking about head to head competition, Oyo is operating in 165 Indian cities whereas Zo rooms has a much lesser coverage with around 30 cities. Both the companies did enter south east Asia market recently, where they face competition from Redoorz, ZenRooms etc.
The financials of this deal are not yet revealed and both the startups did not comment anything on this, however, the website of Zo Rooms seems offline since over 24 hours now. There are also rumors that Zo Rooms will lay off half of its team which sizes 200 members currently.
We will keep you updated on this as and when we get to hear something officially from the 2 startups. Till then, stay tuned. 🙂