The purchase by Oravel Stays of online marketplace Weddingz faced complexities as it required the parties on the seller’s side to be convinced of the match, said a partner involved in the deal.
Oravel Stays is a hospitality company that operates under the brand OYO Rooms. Weddingz helps users book wedding planning services and connects users with wedding service providers. The company was launched in 2015 and is operated by L-Fast Brands. Weddingz had previously raised funding from Singularity Ventures and Sixth Sense Ventures, among others.
“The seller has certain investors on board and bringing a consensus among all parties, concretizing the rights and obligations of the seller and promoter, the terms of settlement for any investor, novation and assignment of contracts … was challenging to a certain extent,” said Souvik Roy, a partner at IC Universal Legal, who advised Weddingz and its promoters.
“The specific rights, benefits and valuation to be ascribed to OYO’s stock entailed nuanced legal discussions and negotiations,” Roy told India Business Law Journal. He added that the purchase also faced complexities during its course since the consideration consisted of both cash and stock.
“This sector holds immense potential for innovation and standardization and it should not be surprising to see more startups making inroads as well as consolidation or acquisitions by bigger players to simplify further and organize the wedding process and tap the enormous opportunities this space offers,” said Roy. He added that notable startups in this field include Wedding Brigade, Shaadi Magic, Wed Me Good and Shaadi Saga.
AZB & Partners advised OYO Rooms with a team comprising partner Niladri Maulik, senior associate Siddharth Khanna and associate Nikita Arora.