Gurugram, Haryana-based hospitality major OYO has made a strategic move by acquiring Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal, just days after raising INR 1,457 Cr ($175 Mn) in a down round. Notably, Checkmyguest was previously valued at $110 Mn, indicating a significant discount in the acquisition deal.
The Arc’s report reveals that the acquisition of Checkmyguest by OYO involved a cash payout of an undisclosed amount. Additionally, the deal encompassed two other companies: HMG (previously known as Helpmyguest), a housing renovation business, and Studio Prestige, a luxury apartment management firm, further expanding OYO’s portfolio.
According to Inc42, OYO is set to acquire Checkmyguest Group, a Paris-based company with a strong presence in the city, as part of its global expansion plans. The acquisition will be facilitated through the issuance of INR 7.92 crore Series G CCPS. The deal will enable OYO to expand its inventory of premium homes in Paris through a share swap agreement, phased over a period of time, as confirmed by an OYO spokesperson. The spokesperson added that the deal would also involve “some cash outgo, which gets quickly offset since it’s a cash-generating business.
Checkmyguest, a vacation rental company founded in 2016 by Julien Madar, Joffrey Ichbia, and Kevin Cohen, offers a diverse portfolio of properties, including homestays and luxury apartments. The company’s acquisition by OYO was recently confirmed by Joffrey Ichbia in a LinkedIn post.
“We are delighted to announce that Checkmyguest is now part of OYO, one of the largest hotel groups worldwide. This merger is a major milestone for us and opens up incredible opportunities in terms of development, new markets, and careers,” Ichbia confirmed.
OYO, a hospitality service company founded by Ritesh Agarwal in 2012, is dedicated to offering convenient and affordable accommodations globally. According to its latest earnings report, OYO’s hotel network has expanded significantly, reaching 18,103 properties by the end of FY24, up from 12,938 hotels in the previous fiscal year.
OYO recently secured INR 1,457 Cr ($175 Mn) in a down round funding led by Patient Capital, founded by Ritesh Agarwal, alongside J&A Partners, and ASK Financial Holdings. This investment valued the company at $2.37 Bn.
In its annual report, OYO reported its first profitable year (FY24) with a profit after tax (PAT) of INR 229.57 Cr, a significant improvement from the INR 1,286.51 Cr loss in the previous fiscal.
However, revenue from operations declined marginally by 1.3% to INR 5,388.78 Cr due to new hotel additions, compared to INR 5,463.94 Cr in FY23. This growth in profitability was driven by increased demand and improved market sentiment.
ⓘ LAFFAZ is not responsible for the content of external sites. Users are required to read and abide by our Terms & Conditions.
