Hotel Startup OYO Expands Into Coworking Spaces

Indian hotel startup OYO, which is currently in 80 countries around the world, plans to expand into coworking spaces, according to a report by TechCrunch.

Oyo has raised around $1 billion from the likes of Airbnb and other big names since September. The venture will be called OYO Workspaces, and it is already running in 10 Indian cities and has about 20 centers. In its current capacity, it can serve upwards of 15,000 people.

Well-known firms like Paytm, Pepsi, Swiggy and Lenskart have all signed up to use the new workspaces. 

Rohit Kapoor, CEO of New Real Estate Businesses, said that there are plans for 50 OYO workspace centers by the end of 2019, with a goal to make it the biggest coworking endeavor in Asia by the end of 2020. 

OYO announced that it has acquired Innov8, a coworking startup that already has 200 workers and about 16 centers. It was acquired for $30 million. 

OYO will have three in-house brands that will be a part of OYO Workspaces, including Innov8, which is being touted as a premium option. The other two are Workflo and Powerstation, which will be geared toward people who want a more affordable option. Those workspaces can be accessed for around Rs 6,999 ($102) a month.

The coworking sector in India is worth about $390 million, which is dwarfed by the $30 billion conventional office space and commercial business. Kapoor said he believes there’s a lot of room for growth in the industry and that the market can only expand.

The coworking spaces will have Wi-Fi, a kitchen, parking, storage and housekeeping services. Potential customers can purchase either a monthly or quarterly pass, which are currently being offered at a discounted rate.

OYO is aggressively expanding its business, and it recently became the third largest hotel chain in the world. It was started six years ago and had a valuation of $5 billion at its last funding round.