Oyo Acquires Paris-Based Checkmyguest in Rs 230 Crore Deal

Hospitality unicorn Oyo has announced a significant expansion with the acquisition of Checkmyguest, a Paris-based platform specializing in managing rental properties, including homestays and luxury apartments. The deal, valued at Rs 230 crore ($27.4 million), combines stock and cash, marking a strategic move in Oyo’s global growth strategy.

Strategic Acquisition Enhances Oyo's European Presence

In a transaction that includes issuing 79.2 million shares and an undisclosed cash component, Oyo has secured Checkmyguest’s portfolio, which includes high-end properties and home renovation services. The acquisition also encompasses Checkmyguest's affiliated brands, Studio Prestige (an apartment rental service) and Helpmyguest (a property design and renovation company).

A spokesperson for Oyo highlighted the strategic value of the acquisition: "Checkmyguest's strong presence in Paris will allow Oyo to expand its inventory of premium homes. The deal involves some cash outgo but is expected to quickly generate returns due to Checkmyguest’s profitable business model."

Oyo's Expanding European Footprint

This acquisition is part of Oyo’s broader strategy to bolster its presence in the European market. The company has reported substantial growth in its home business across Europe, with income increasing by 2.1 times compared to its hotel revenue growth of 1.8 times in India. As of March 2024, Oyo operates approximately 85,000 homes in Europe and 18,000 hotels in India and Southeast Asia.

Oyo’s European expansion began with its purchase of @Leisure Group from Germany’s Axel Springer in 2019 for $415 million. Subsequent acquisitions include Croatia-based Direct Booker in 2022, which added 3,100 vacation homes, and Danish operator Bornholmske, contributing 700 more properties.

Recent Funding and Financial Performance

The acquisition comes amid Oyo’s ongoing efforts to raise additional funds, with founder Ritesh Agarwal leading a recent $175 million funding round. This round was supported by family offices and high-net-worth individuals. The company’s consolidated revenues for FY24 remained stable at Rs 5,388 crore, with a profit after tax of Rs 229 crore.

Oyo’s investment in Checkmyguest and its European operations is part of a broader strategy to solidify its position in the global vacation rental market. Through its brand Oyo Vacation Homes, the company continues to expand its footprint in key European countries, including Spain, France, and Norway.