After raising $1 billion recently, OYO, India’s largest budget hotel startup, is now in talks to acquire Treebo Hotels. Like OYO, Bangalore-based Treebo Hotels is also into the affordable accommodation segment.
SAIF Partners and Matrix Partners are common investors in both Treebo and OYO hotels. According to a report, the acquisition will help OYO to expand and get
If the acquisition deal materializes, it will be the second largest deal in the domestic travel market, just next to the acquisition of Ibibo by MakeMyTrip in the year 2016.
Treebo was founded by Kadam jeet, Siddharth Gupta and Rahul Chaudhary in the year 2015. It operates about 10,000 rooms across 400 properties in India.
So, the scale of operations of Treebo is much smaller than the scale of OYO, which operates about 8,700 properties in India with around 164,000 rooms. Further, the number continues to expand month after month for OYO. The difference in the scale can be mainly attributed to the large funding that OYO has received over the years.
Treebo has recently acquired the travel startup Events High in May this year and has also secured $57 million in funding over four rounds, according to Crunchbase.
Picture Credits: Treebo