Hotel chain OYO said on Tuesday that it had 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 had 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 had increased its international footprint in India, China, Malaysia, Nepal and the U.K.
‘Investing in tech, talent’
“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 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 fund-raising.
The company said it would 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.
