Despite a setback in 2015, Zostel CEO Dharmveer Chouhan wishes that the deal with Oyo materialises sometime in the future.
Founded by a group of IIM Calcutta alumni in 2013, Zostel, the network of hostels for backpackers now has a presence in 36 destinations. The company's pet project Zo Rooms was scheduled to be acquired by Oyo in 2015, but after over two years, Oyo stated that it had ended talks to acquire Zo Rooms. The reason behind the decision and why the deal was called off by Oyo was not made clear.
Almost a year later, Zostel moved the Supreme Court which has appointed an arbitrator in the case.
Despite the two-year setback, CEO of Zostel Dharmveer Singh Chouhan wishes that Oyo "honours its part of the transaction sometimes in future".
In this episode of the Setting Sail podcast, Chouhan talks to Moneycontrol's Priyanka Sahay about what it takes to run Zostel, the acquisition deal of Zo Rooms and the outlook on failed entrepreneurs.
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