Budget hotel aggregator OYO Rooms has raised $250 million in Series D equity round led by SoftBank, through SoftBank Vision Fund, the world’s largest private equity fund that has raised $93 billion from investors including Saudi Arabia’s main sovereign wealth fund, Apple Inc, Qualcomm, Taiwan’s Foxconn Technology and Japan’s Sharp Corp.
Other investors who participated in this round include Sequoia India, Lightspeed Venture Partners, and Greenoaks Capital. Hero Enterprise has joined OYO as a new investor.
Commenting on the investment, Justin Wilson, SoftBank’s Board representative said, “OYO has solidified its position in India as the leading accommodation brand for consumer affordability and high-quality standards. We’re excited to continue to support OYO as they further expand their position in India and bring the OYO promise of affordability and elevated hospitality to other markets around the world.”
Though the company hasn’t specified the exact terms of the latest funding round, the investment is believed to value the Gurgaon-headquartered company at $850 million-$900 million, significantly higher than $460 million from the company’s last funding round in August 2016. So far OYO has raised more than $291.6 Mn funding apart from this funding round.
Ritesh Agarwal, Founder and CEO, OYO, said, “We are now focusing on further accelerating network coverage to consolidate our leadership in economy through OYO rooms and mid-market category through Townhouse brands. We will also deploy fresh capital to take our made-in-India business model to international markets which are characterised by a similar supply-demand imbalance in real-estate and hospitality.”
Started from Gurugram in 2013, OYO currently operates over 70,000 rooms in 230 cities in India, Malaysia, and Nepal. It employs over 2,500 people.
The newly raised capital will be utilized towards international expansion across South-East Asia. The company will also enable the budget hotel marketplace to bring additional resources to accelerate enhancement of customer experience and strengthen its technology stack. Additionally, OYO is looking to add 10,000 rooms to the network each month.
OYO competes directly with Treebo and FabHotels, besides the online travel services providers such as MakeMyTrip and Yatra.