homestartup NewsOYO Rooms may acquire FreshMenu in a deal worth $30 million, says report

OYO Rooms may acquire FreshMenu in a deal worth $30 million, says report

OYO Rooms may acquire FreshMenu in a deal worth $30 million, says report
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By CNBC-TV18 Feb 22, 2019 9:34:27 AM IST (Published)

According to the sources, the current deal will also involve payment of cash to buy out few shareholders of FreshMenu, the report said, adding that Zodius Capital which has invested about $17 million in the company in 2016 will likely be paid in cash if the deal transaction is finalised.

In an effort to raise capital, cloud-kitchen player FreshMenu may get acquired by hospitality major OYO rooms in a deal worth of $30-40 million in a stock based acquisition, sources familiar with the development told The Times of India.

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According to the sources, the current deal will also involve payment of cash to buy out few shareholders of FreshMenu, the report said, adding that Zodius Capital which has invested about $17 million in the company in 2016 will likely be paid in cash if the deal transaction is finalised.
Lightspeed Venture Partners, also an investor in OYO Rooms and GrowthStory will be given shares of OYO, the report said. FreshMenu has managed to raise about $22 million from its investors.
“We do not comment on industry speculation and therefore cannot comment on this… As the largest hotel chain in India, operating franchised and lease assets, we do have an active play in the F&B business with over 25 percent of our revenue coming through the kitchens we operate in our hotels and hence culinary design and good food experience are valuable to us. We have nothing further to announce at the moment,” a spokesperson from OYO Rooms told TOI.
As per sources, the Gurugram-based startup kitchen clocks about 15,000-20,000 orders on a daily basis and if the deal goes through then OYO plans to leverage its infrastructure of 1,70,000 rooms across the country besides its ability to manage its workforce, the report added.
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