Oyo has raised $800 million in a funding round led by SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital. It has received a commitment of an additional $200 million, summing up the final investment to $1 billion. However, it is unclear as to when the additional $200 million will be issued.
Oyo will invest a significant part of the newly raised funds — approximately $600 million — into its China operations. It will also deploy the capital in existing markets, expand into new international markets and recruit new talent. Internationally, Oyo operates in China, Malaysia, Nepal and began operations in London this month.
The company claims to have over 10,000 hotels in over 350 cities globally. The homegrown company also claims to have over 1,25,000 rooms in India and over 87,000 rooms in China. Oyo is adding 40,000-45,000 rooms every month between China and India, the company’s founder and CEO Ritesh Agarwal told Business Standard. Agarwal told the publication that Oyo will also use the newly raised funds to explore newer businesses.
Oyo’s spokesperson told MediaNama that the company is now valued at $5 billion, making it the most valued hospitality company in the country, according to a report by Business Standard.
OYO’s previous funding
With this funding, OYO has raised a total of $1.45 billion (including the $200 million commitment) in nine rounds of funding, per CrunchBase data.
- This round of investment comes after Oyo, in September 2017, raised $250 million in a Series D round led by SoftBank through its SoftBank Vision Fund.
- Prior to that, the hotel aggregator 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.