Oyo in talks to acquire cloud kitchen startup FreshMenu

Oyo Hotels & Homes is in talks to buy cloud kitchen startup FreshMenu for $50-60 million.

The sources aware of the discussions said, "The move will help Oyo standardise its food experience across hotels, an initiative that has internally been in the works for more than a year. It will also significantly help improve margins."

This is not the first time that FreshMenu has tried to sell its business to a larger startup. Earlier, it had been in talks with Zomato, Ola, Swiggy, Eat.fit, and Faasos as well.

An Oyo spokesperson said, "We do not comment on industry speculations 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% of our revenue coming through the kitchens we operate in our hotels and hence culinary design and good food experience are valuable to us."