OYO Hotels raises $1 b, to expand global footprints

OYO Hotels raises $1 b, to expand global footprints

Ritesh Agarwal

Hotel chain OYO has raised a total of $800 million in the latest financing round led by SoftBank Investment Advisers (SBIA) through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital. OYO Hotels also confirmed that it received a commitment of an additional $200 million, bringing the total to $1 billion in this round.

Ritesh Agarwal – Founder and CEO, OYO said, “We have already started expanding our presence to newer segments, with OYO Home, OYO Townhouse and more recently Palette Resorts by OYO. We will continue to explore newer businesses while remaining focused on both organic and inorganic growth. In the last 12 months, we have increased our international footprint to five countries - India, China, Malaysia, and Nepal, and more recently in The UK."

He added that with this additional funding, the company plans to rapidly scale its business in these countries, while continuing to invest further in technology and talent.

"We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global," he said.

OYO India has over 1,25,000 rooms and is witnessing 3x growth in transactions year-on-year with net take rates over 20%. 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, while the rest will go into maintaining its leadership position in India and expansion into new markets.

Launched in May 2013, globally, OYO chain of hotels is present in over 350 cities with over 10,000 asset partners spread across five countries including India, China, Malaysia, Nepal, and the UK.