Oyo Hotels & Homes, which is backed by SoftBank, is all set to acquire a complete stake in Amsterdam-based @Leisure Group, which is a vacation rental firm, in an all-cash transaction for a sum of $415 million. This is the largest acquisition made by an India-based startup abroad.
Axel Springer, a German media company, sold its 51% stake in @Leisure Group to Oyo for more than $200 million. The remaining stake in the company was held by multiple Amsterdam-based investors, who have also sold their stake in the firm to Oyo. The deal is likely to close by June 2019. Amsterdam is expected to be the next major market for Indian startup Oyo after China.
According to Axel Springer, @Leisure Group achieved an operational profitability of around $27 million and a revenue of $149 million for the year that ended in December 2018. Oyo, on the other hand, registered a three-fold rise in its revenue to $60 million for the financial year that ended on 31 March 2018.
@Leisure Group manages holiday parks, holiday homes, and holiday apartments in Europe. As part of the acquisition of @Leisure Group, Mr. Tobias Wann, the company’s Chief Executive Officer, will be joining the leadership group of Oyo as Chief Executive Officer, Vacation Homes, Oyo Global. In his new position, Mr. Wann will be working with Mr. Maninder Gulati, who is Oyo’s Global Chief Strategy Officer.
Oyo’s latest acquisition comes soon after Airbnb invested between $150 million and $200 million in Oyo. Internationally, Oyo has a presence in China, the United States of America, the United Kingdom, Nepal, and Malaysia, among others, where it operates over 18,000 leased and franchised hotels.
This will be Oyo’s fourth acquisition in the last one year. In March 2018, Oyo acquired Chennai-based Novascotia Boutique Homes, a service apartment company. In July last year, Oyo acquired Mumbai-based AblePlus Solutions Pvt. Ltd., which is an Internet of Things (IoT) firm. Oyo also acquired Weddingz.in, which is a digital marketplace for wedding vendors and venues, in August 2018.
Oyo has also strengthened its upper management by making a number of appointments to aid its expansion plans.
Sources: The Times of India, VCCircle