Budget hospitality startup Oyo Rooms is in advanced talks with FreshMenu to buy a big stake inside the cloud-kitchen startup, sources informed Mint. This deal would mark the entry of India’s 1/3 most valued startup in the online food shipping business.
These discussions come months after Oyo raised nearly $1 billion, which drive up its valuation to $five billion. “Oyo is building a food team, with the intention to assist FreshMenu to amplify to extra cities beneath the Oyo logo call. The idea will be more approximately adding the element of meals to similarly build the hospitality enterprise instead of moving into the food transport absolutely,” a source told the newspaper.
Oyo and FreshMenu were reportedly added together via their commonplace investor Lightspeed Venture Partners.
According to the file, this would be a notable possibility for a business enterprise like FreshMenu to make its mark felt within the hypercompetitive meals technology zone. It is brimming with groups like Swiggy, Zomato, and Uber, which makes it hard for smaller organizations that depend upon discounts to draw clients.
One of the investors informed the newspaper that FreshMenu is just an emblem promoting on meals aggregators like Swiggy and Zomato. Being one of the many manufacturers present on those structures makes it hard for the corporation to ramp-up its commercial enterprise.
The brand has been searching out an opportunity to elevate price range for months. Headed by way of Rashmi Daga, FreshMenu had reportedly initiated discussions with many traders to elevate $25-30 million. It changed into additionally in talks with Ola for the equal, which went on to shop for Foodpanda in 2017.
“Oyo now has a tremendous amount of cash and a strong backing of SoftBank. It will honestly try and use this cash to enter into multiple verticals,” any other investor turned into quoted as announcing within the record. Moneycontrol couldn’t independently verify the file.
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