Online budget hotel aggregator, OYO has raised $250 million (Rs 1600 crore) in a Series D funding round led by SoftBank through its SoftBank Vision Fund. While existing investors Sequoia India, Lightspeed Venture Partners and Greenoaks Capital also participated in the round, Hero Enterprise joined as a new investor in the round.
OYO said in a statement that the fresh funding will be used to strengthen its network in India, and that it also plans to expand in South East Asia (SEA) region. Ritesh Agarwal, Founder & CEO of OYO, added that the company will deploy the fresh capital to expand in international markets which have India-like supply-demand imbalance in real-estate and hospitality. The company is developing capabilities to add 10,000 rooms to its network each month, Agarwal claimed.
OYO’s previous funding
With this funding, OYO has raised a total of $450 million in seven rounds of funding, as per CrunchBase data. This funding comes after August 2015, when hotel aggregator had raised $100 million in a funding round led by SoftBank group, Greenoaks Capital, Sequoia Capital and Lightspeed India. In March 2015, it raised $20 million in a funding round led by Greenoaks Capital and other existing investors.
OYO competes with numerous budget hotel aggregators, which include Treebo, FabHotels, MakeMyTrip-GoIbibo, Paytm, Booking.com, Hotels.com, Yatra, Airbnb- to name a few.
A week ago, Bangalore-based online budget hotel aggregator Treebo raised $34 Million (Rs 220 crore) in its Series C funding round led by Hong Kong-based investment firms Ward Ferry Management, Karst Peak Capital. In July, Gurgaon-based online budget hotel aggregator FabHotels secured Series B funding of $25 million from Goldman Sachs and Accel Partners.
In June, Airbnb tied-up with Maharashtra Tourism Development Corporation (MTDC) to list MTDC home stays on its platform. It also had signed a MoU with Self-Employed Women’s Association of India (SEWA) to expand its network of homes in rural India, in November last year.