OYO, the Indian budget lodging company, on Monday, 2nd September, took over the Copenhagen- based data science firm with specialization in dynamic pricing, Danamica as an initiative to expand its business in the European market. The deal was announced at an undisclosed price though according to a TechCrunch report, OYO paid about $10 million to acquire the Danish company.
In a statement issued by OYO, they said,
“This acquisition is in line with OYO’s continued commitment to its global vacation rentals business through strategic investments in technology products, processes, and people.”
Founded in 2016, Danamica is a data science firm with expertise in intelligent pricing which provides the market’s best and most user-friendly pricing tools to holiday rental agencies. The technology used to operate makes the cost low by optimally and dynamically pricing and hence, maximizing the profit on holiday rentals. The algorithm of the firm analyses 144,000 data points every hour and makes 60 million changes in price each day with an accuracy predicted at 97%.
Maninder Gulati, OYO Vacation & Urban Homes Global Head & OYO Hotels and Homes Chief Strategy Officer said,
“We are delighted to announce our acquisition of Danamica, a Europe based, machine learning and business intelligence company specialized in dynamic pricing, that will help us be more accurate with pricing, leading to higher efficiencies and yield for our real estate owners and value for money for our millions of global guests, both everyday travelers and city dwellers, that choose an OYO Vacation Homes as their abode,”
Most prominent international acquisition
The all-cash deal is OYO’s most massive and notable global acquisition. It comes four months post the announcement of the purchase of @Leisure, an Amsterdam based vacation rental company from Axel Springer, a German media group, for a reported €370 million, which was renamed as Oyo Vacation Homes later.
The founders on a great deal
The founders of Danamica, Mads Westberg and Rune Larsen said, “Like OYO, we recognize the untapped potential in the vacation rental industry that can be fulfilled with a data-driven approach,”
They added, “we have found the right home for us in OYO and are excited about the prospect of using our expertise in pricing and machine learning to further help OYO’s continued growth and success.”