OYO inks first acquisition deal with Novascotia Boutique Homes

Indian hospitality company OYO is broadening its portfolio of properties with the acquisition of Novascotia Boutique Homes.

Novascotia’s 350 furnished executive accommodations will now be known as OYO Silverkey, according to a statement on the Novascotia website.

These serviced apartments are located in business hubs in five cities around India. By the end of 2018, OYO says it will expand its Silverkey offerings to 12 cities.

In a statement, the company calls this deal the first in “a series of acquisitions, collaborations, innovations and launches.” 

“We are thrilled that our very first business acquisition involves an established brand like Novascotia,” says Ritesh Agarwal, OYO founder and CEO.

“Though in the niche segment of boutique homes, Novascotia brings with it the expertise in catering to the corporate travel segment, an area we have seen great potential and established ourselves as the market leader with varied offerings across 230-plus cities including all major corporate hubs. The acquisition forms an integral part of our inorganic growth plan, in line with our ambition to create beautiful and quality living spaces and adding value to every form of real estate.”

Founded in 2013, OYO manages more than 70,000 rooms in more than 230 cities in India, Malaysia and Nepal through its brands OYO Rooms, OYO Townhouse and OYO Home. It aims to have 180,000 rooms in its inventory by the end of 2018.

“We are upbeat about our India story and plan to go deeper into the market by exploring new opportunities and changing the way people stay away from home, and this takes us a step ahead in that direction,” Agarwal says.

“We look forward to scaling up this business and offering corporates what they look for the most while traveling ‐ a homely and enriching experience. This acquisition is in line with our quest to support India’s entrepreneurial ecosystem and create infrastructure for new companies to grow.”

In September, OYO had two notable funding rounds. First it announced $250 million in Series D financing led by SoftBank through SoftBank Vision Fund with participation from existing investors Sequoia India, Lightspeed Venture Partners and Greenoaks Capital and the addition of new investor Hero Enterprise. A week later, the company announced a $10 million strategic investment from hotel management firm China Lodging Group.