24 April 2017, India:
Gurgaon-based Hotel aggregator Oyo Rooms has been in talks to raise more funds since February 2017. As per the latest update, Oyo is all set to raise $250 million from the existing investor Softbank after which it will be valued at $850 million, ET reported. The fresh funds will be utilized to expand the business and developing new formats like Oyo Townhouse.
“Seeing what has played out at Snapdeal, many early investors are wary of SoftBank taking large ownerships in their portfolio companies. But Oyo hasn’t been able to shore up capital from external investors, which is why they have opted for half of what was committed by SoftBank,” a person privy to the transaction told ET on the condition of anonymity.
A SoftBank spokesperson told ET, “We do not comment on portfolio companies and especially around fund-raising efforts. We are very happy with Oyo’s progress in general and commend the team.”
Oyo is India’s largest branded network of hotels founded by Ritesh Agarwal, the company currently operates in India & Malaysia with over 200+ locations including Delhi, Gurgaon, Mumbai, Bangalore, Hyderabad, Goa, Chennai, Kolkata and Kuala Lumpur. OYO’s presence includes major metros, regional hubs, top leisure destinations, as well as pilgrimage towns. (Image- Oyo Rooms)