Hotel aggregator OYO said on Tuesday that it 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 in the last 12 months, the company has increased its international footprint in India, China, Malaysia, and Nepal, and more recently in the U.K.
“With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent,” said Mr. Agarwal. “We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global,” he said. Financial services company J.P. Morgan is acting as the exclusive financial advisor to OYO on this fundraising.
The company said it 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. The rest of the funds will go into maintaining its leadership position in India and expansion into new markets. OYO China, has a presence in 171 cities with over 87,000 rooms, in over ten months since its foray into the market.
“With a promise to deliver good quality accommodation at affordable prices, OYO has grown exponentially to become the largest hotel chain in South Asia, and is swiftly expanding to international markets,” said Munish Varma, Partner, SBIA.