OYO Hotels & Homes has acquired Danamica, a data science company for an undisclosed amount. Danamica, a Copenhagen-based startup specializes in dynamic pricing through machine learning and business intelligence technologies.
“OYO Hotels & Homes, the world’s third-largest and fastest-growing hotel chain, has acquired Danamica, a Copenhagen-based data science company, with machine learning and business intelligence capabilities, specialized in dynamic pricing,” the company said in a statement on Monday.
“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,” it said.
Danamica, which was founded in 2016, has built machine learning tools and “business intelligence capabilities” to specialize in dynamic pricing of rental properties. The firm’s algorithm analyzes 144,000 data points every hour and makes 60 million price changes every day with a prediction accuracy of 97% to help hotels boost their revenue.
The Indian startup said Danamica would help it scale its technical expertise as it expands its footprint in overseas markets.
With the acquisition of Danamica, OYO will be able to drive growth by leveraging dynamic pricing across all its brands – OYO Home, Belvilla and DanCenter, all of them already at the forefront of vacation rental pricing. Additionally, OYO and its real estate partners around the world will benefit from using data sciences for improved yield.
The announcement comes weeks after OYO said it planned to invest €300 million in its vacation rental business in Europe, and $300 million toward U.S. expansion over the coming years. In May this year, OYO bought Amsterdam-based holiday rental company Leisure from Axel Springer for $415 million.
Founded in 2013 by Ritesh Agarwal, Oyo operates more in more than 500 cities across major countries including India, U.S, China, Malaysia, the UK, the UAE, and Indonesia, Recently Oyo’s valuation reached $10 billion, with a portfolio comprising more than 23,000 hotels and 125,000 vacation homes.
Further, it is rapidly expanding in other countries. It has already established a presence in 80 countries, the six-year-old startup claims.
Data sciences and data mining across pricing, AI, and imaging sciences have become an essential constituent of today’s online resource sharing business model. It is also a huge asset that analyses many years of data and pricing trends and provides logical and scientific recommendations.