Although the consolidation talks are in initial stages, Oyo Rooms may buy its rival Zo Rooms. Industry experts say the consolidation is likely to take place in areas such as food delivery, local services, online classifieds as well as online retail.
This move by the hotel aggregator Oyo Rooms comes after India's largest online travel agencies, MakeMyTrip and Goibibo, blocked Oyo Rooms and Zo Rooms from listing and marketing hotel properties on their websites.
Oyo Rooms, which is backed by Japan's SoftBank and has an estimated worth of around Rs 2,500 crore ($400 million) after its latest funding, books around 250,000 rooms every month.
Whereas, Zo Rooms, which is backed by Tiger Global and was valued at about $90 million after latest funding round, books about 100,000 rooms, which is quite small a number when compared to Oyo Rooms.
However, there is no confirmation on whether the deal has been finalised and the size of the transaction during the buyout.
Meanwhile, apart from this deal, we may see a number of mergers as many Internet firms are in acquiring mode, such as Quikr and Commonfloor.
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