Existing investors Sequoia Capital , SoftBank Vision Fund, and Lightspeed Venture Partners fund $800 million, commit for another $200 million
Delhi: Gurugram based hotel chain Oyo Rooms raised $800 million in fresh funds led by Softbank Vision Fund, making it the newest entrant in the India’s unicorn club. It also received commitment from the Japanese investor largely to further raise $200 million, the company said on Tuesday.
Existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital participated in this term of investments.
The company did not reveal the valuation of the current round. However, according to sources, Oyo could now have a valuation around $3-$4 billion.
“The company will direct a significant part of the funds from this round of financing, approximately $600 million, into strengthening its position in China, which is still in the early stages of growth….” an official of the company informed.
Oyo has expanded its presence to five countries in the last 10-12 months. The company is now present in India, China, Malaysia, UK and Nepal.
Oyo also plans to use the capital to scale its business in these markets, new geographies and invest further in technology and talent.
According to the company, Oyo India has over 125,000 rooms and about 87,000 rooms in China’s 171 cities.
“We will continue to explore newer businesses while remaining focused on both organic and inorganic growth,” said Ritesh Agarwal, founder and CEO at Oyo. “We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global.”
J.P. Morgan is acting as the financial advisor to Oyo for this fundraising.
The launch of its Townhouse brand in January 2017 played a key part in improving Oyo’s image with customers. Townhouse properties are owned by Oyo and fully managed by the company’s staff.