Oyo Hotels & Homes acquire 100% stake in Amsterdam-based vacation rental company Leisure Group in an all-cash deal for $415 million.
Oyo makes its second-largest market in Dutch after China
Oyo reports three times increase in revenues to $60 million in the financial year 2018.
Indian has its largest acquisition by an Indian startup overseas by acquiring Amsterdam-based vacation rental company Leisure Group in an all-cash deal for $415 million. This deal is won by SoftBank-backed Oyo Hotels & Homes headed by Ritesh Agarwal a 25 years old entrepreneur who is promoting the company across the world.
Oyo makes its second-largest market in Dutch after China. It buys a 100% stake in Leisure Group. German media Major Axel Springer, which held a 51% stake in the European company, sold its stake to Oyo for over $200 million. The rest of it was held by multiple Dutch investors, whom Oyo has bought out too and the deal is expected to close by June.
Berlin-based Axel Springer said Leisure achieved operational profitability of near to $27 million and revenues of $149 million for the year ending December 2018. For the financial year ending March 2018, Oyo reported three times increase in revenues to $60 million and loss of $52 million.
Agarwal, founder, and CEO, Oyo Rooms on acquisition of Leisure said, “Leisure Group has all valor in assisting the development of Europe into a vacation rentals hotspot and we are keen to leverage their competencies towards ensuring beautiful vacation rental and urban homes experience for millions of tourists from every part of the world.” Leisure operates holiday parks, holiday apartments, and holiday homes. Post this acquisition Tobias Wann, CEO of Leisure Group, will join Oyo’s leadership group as CEO, vacation homes, Oyo global, and will work with Oyo’s global chief strategy officer, Maninder Gulati.
Oyo is aggressively enhancing its business globally at each and every country of the world. OYO a Gurgaon based startup started with 1 hotel in Delhi at 2013 and now has reformed to a $5 billion worth start-up funded by various international venture capitalists. It has grabbed its presence globally especially in China, Malaysia, Nepal, Britain, Dubai, Abu Dhabi, Spain, and Portugal. Currently company operates in more than 259 Indian cities with 8,700 hotels. It has decided to invest $200 Million in its Indian business. In the past year, Oyo has aggressively spread its business in the overseas market including China, Philippines, UK, Saudi Arabia, Japan, and Indonesia. Oyo portfolio covers Oyo Rooms, Oyo Palette Resorts, Oyo Townhouse, Oyo collection O, Oyo Life, and Oyo Silver key.
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