OYO Hotels and Homes acquires data science firm Danamica
As part of its continued expansion, hospitality firm OYO has acquired Danamica, a Copenhagen based data science company.
OYO said that the move, which will see it utilise Danamica’s machine learning and business intelligence solutions, will enable home owners to more accurately price their properties and create higher yield for real estate owners. According to various reports, the acquisition was valued at close to $10mn.
Since its founding in 2013, OYO Hotels and Homes has become the third largest chain of hotels, with a portfolio of over 23,000 hotels and 125,000 vacation homes; over half its one million rooms being acquired within China in the past year alone.
Mads Westberg and Rune Larsen, founders of Danamica, commented: “We are very pleased to announce that Danamica is now part of OYO Vacation Homes family. OYO’s ambition and growth are extraordinary and we couldn’t imagine taking part in a more exciting journey. OYO and Danamica have a shared understanding of the importance and impact of AI and data science.”
Danamica’s algorithm analyses 144,000 data points every hour, making 60 million price changes every day with an accuracy of 97%. “Data sciences across pricing, AI, and imaging sciences have been a cornerstone of OYO’s proprietary revenue enhancement technology. It is also a huge missing piece in the way traditional vacation rentals industry is run,” says Maninder Gulati, Global Head, OYO Vacation and Urban Homes, & Chief Strategy Officer, OYO Hotels & Homes.
This is the latest in a flurry of activity from OYO that includes the acquisition of Amsterdam-based vacation rental company @Leisure from Axel Springer for $415mn earlier this year, with further plans to invest another $300mn in the vacation homes business around Europe and the US. In addition, in July this year the business launched OYO Workspaces, having already acquired Indian co-working spaces startup Innov8 for around US$30mn.
OYO Workspaces currently holds over 20 centres in 10 cities across India with a capacity for 15,000 workers. Companies such as Pepsi, Paytm and Lenskart have contributed to the 6,000 employees currently signed up to the service.
These branching developments and a further $2bn investment from Ritesh Agarwal, founder of SoftBank have seen OYO currently valued at $10bn.
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