Oyo is in final stages to acquire its competitor, Zo Rooms.
Sources tell us that the deal is done and Zo Rooms is laying off its staff in big numbers (except tech and call-center employees).*
Both Zo and Oyo rooms have done almost similar revenue numbers in FY14-15, but the biggest factor that tilts the equation towards OYO is..well, the massive funding it has raised.
OYO last raised $100mn led by Softbank while ZoRooms’ raised $30mn funding from Tiger global. Both of these companies are trying to raise another round – so we are guessing that the consolidated entity will raise a bigger round to combat the growing competition.
From what we know, Zo rooms has laid off its employees in all departments except tech and call-center*.
*Update : Zo Rooms has written to us that there are no layoffs being done in the company.