`Paris-based home rental startup Checkmyguest was acquired for $27.4 million by the hospitality unicorn, OYO. The company signed an agreement to buy its stakes in the startup through a cash and stock deal. This investment will enable both companies to combine resources and improve hospitality compatibility while increasing their customer and client base.
Checkmyguest is a platform for managing rental homes and luxury apartments. The company also offers home renovation services. The rental home provider was valued at 110 million USD. The Arc reported that the hospitality major announced its plans to issue 72.9 million shares to acquire the startup. The size of the cash payout is yet to be reported. The deal also includes the buyout of luxury rental apartment management firm Studio Prestige and the housing renovation business. The startup already has a strong market presence in Paris and Oyo will be able to acquire the firm through a share swap over a period. The company focuses on merging businesses and bringing their technologies, clients, and solutions together.
The acquisition will help Oyo enhance its capability by integrating Checkmyguest’s clients, technology, network, and approach. Oyo is an online hotel booking platform that allows users to book accommodation in various locations. The hospitality startup secured around 3.41 billion USD across multiple funding rounds since its inception, including $175 million raised during its series G funding round from Incred Wealth. After this deal, the companies will have more innovative hospitality solutions, increased resources, and a larger workforce. Checkmyguest competes with other companies in the same segment such as Hostaway and Guesty.
The Paris-based startup offers solutions for managing short-term rental properties and services like transactions, guest management, work, and mobility lease management. Oyo announced a profit after tax of Rs 229.57 crore in FY24. However, the operational revenue decreased by 1.3 percent to Rs 5,388.78 crore in the same duration. The company plans to reduce its losses by minimizing its employee benefits. Oyo acquired Checkmyguest to strengthen its position in the hospitality sector while offering innovative solutions. Oyo has made various European acquisitions in the past years to expand its business in Spain, Germany, and other countries.
Conclusion:
Oyo acquired a French home rental startup Checkmyguest for $27.4 million through a cash and stock deal. The acquisition was a part of the firm’s plan to strengthen its platform and generate more innovative hospitality solutions. This investment is an initiative to merge the companies to enter the fresh hospitality market while scaling up. The deal includes the buyout of luxury rental apartment management company Studio Prestige and Helpmyguest. The hospitality major focuses on expanding its services in the European market and expanding its business in Spain, Germany, France, and other countries. This acquisition will enable Oyo to enter the French hospitality market and enhance its services. The acquisition was confirmed by the co-founder of CMG, Joffery Ichbia with a social media post through LinkedIn.
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