After hotels and homes, Indian hotel startup Oyo is now venturing into the commercial real estate business with the acquisition of Indian co-working venture Innov8 in a US$30 million, all-stock deal, Reuters reported.
With the acquisition of Innov8, Oyo is expected to take on fellow SoftBank-backed shared office space manager WeWork, which is now gearing up for an IPO, the report added.
Having brought Innov8 under its fold, Oyo revealed that it would incorporate a multi-brand approach with two other co-working brands, Powerstation and Workflo, to introduce Oyo Workspaces.
Led by Rohit Kapoor, CEO, New Real Estate Businesses, Oyo Workspaces will offer co-working real estate in the upper-mid scale, mid scale and economy categories.
Oyo is expected to open over 21 of its shared work spaces in more than 10 cities across the country. There are plans to expand Oyo Workspace to over 50 centres by the end of 2019.
New Delhi-based Innov8 offers upmarket shared workspaces, where a private office costs as high as Rp64,999 (US$947) a month, while a desk is sold for Rp9,999 per month.