South Asia’s Biggest Hotel Chain OYO in Conversation to Raise $1 Billion
OYO is in conversation with its new and existing investors to raise $1 billion
OYO had raised $800 million SoftBank Group Corp.
OYO has also announced its complete stake acquisition of Leisure Group
OYO Rooms, also known as OYO is in conversation with its new and existing investors to raise $1 billion (INR 6987 crore). Nevertheless, the key part is that the company is looking to twice its valuation for the round of funding to $10 billion.
Under Ritesh Agarwal’s leadership, The hotel chain had raised $800 million (INR 5590 crore) from Japanese multinational company SoftBank Group Corp. in September last year. In addition to that $100 million (INR 699 crore) pickups from Grab and DIDI Chuxing. Since its inception, the company’s present values at $5 billion.
Currently, The Delhi-based hotel chain company is looking forward to raising another $1 billion and with the assistance of new investors that can head the funding round and strategic and financial investors are lining up for the same. OYO is one the biggest, and fastest-growing company and it is aiming to become the largest hotel chain in the world, and with the tremendous performance, investors are up for it.
OYO room is the world’s sixth-biggest hotel chain in the world. The company is the second-largest hotel chain in China with 4.5 lakh rooms and 10,000 facilities in the entire period of 1.5 years.
In the previous round of funding, OYO had raised $1 billion (INR 6996 crore) from SoftBank. This April, a San Francisco-based Airbnb also committed to investing $200 million (INR 1399 crore) in the company. Other investors of the company are Sequoia Capital and Lightspeed Ventures. The company is ready to further expand its international presence with the launch of operations in London.
OYO has also announced its complete stake acquisition of an Amsterdam-based vacation rental company, @Leisure Group for a massive amount of $415 million (INR 2900 crore). With $10 billion valuations, OYO will be standing as the highest valued Indian startup. But another homegrown startup ‘Paytm’ is expected to raise new funds around $18 billion which will put OYO on the second position.
What is OYO?
OYO Rooms, also known as OYO is South Asia’s biggest hotel chain running in countries India, China, Malaysia, U.K., and Nepal. With over 10,000 hotels under its course. OYO was founded in 2013 by Ritesh Agarwal and raised Series A round of funding $24 million (INR 168 crore) through Sequoia Capital, DSG Consumer Partners, Lightspeed Venture Partners, and Greenoaks Capital.
The Delhi-based company has recently also announced a deal of $200 Million (INR 1397 crore) for the India and South Asia firms as of its endeavour to stimulate on its expansion plan, and develop customer experiences. “India is our key home market”, CEO Agarwal said.
OYO is running in +800 cities across +24 countries including India, China, Malaysia, Nepal, UK, UAE, Saudi Arabia, UAE, and Nepal. It has over 700,000 rooms, under its sway. Which helped then by growing its sales by 4.3x year by year, and ended up by $1.8 Billion in December 2018. The firm has been performing vigorously, just last month, it began with operation in Japan.
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