- General
- September 25, 2018
- 4 minutes read
Indian budget hospitality startup Oyo Rooms raises $1 billion from Softbank at $5 billion valuation
image credit : Oyo Rooms Indian budget hotel aggregator and major hospitality startup Oyo Rooms has now raised $1 billion…
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| image credit : Oyo Rooms |
Indian budget hotel aggregator and major hospitality startup Oyo Rooms has now raised $1 billion in new funding from the likes of Softbank, Sequioa, Lightspeed Venture Partners, Greenoaks Capital and other existing investors.
Softbank’s Vision Fund led the round with an $800 million commitment for the company now said to be valued at $5 billion with this round.
Oyo is planning an expansion into the Chinese market with a significant part of this funding geared for operations in the region as it taps into more markets to expand its reach.
The company led by 24 year old founder and current CEO Ritesh Aggarwal began just 5 years ago and has grown at a very rapid rate counting over 8,500 hotels across 230 Indian cities as part of its network. Prior to this round, Oyo had raised over $450 million with Softbank being a major backer and now returning to lead this round.
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| image credit : Oyo Rooms |
“In a short span of time, Oyo Hotels has grown to become the most-preferred hotel brand in both economy and mid-market segments. 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,” Ritesh Agarwal said in a statement.
Oyo’s reported $5 billion valuation now marks it among the top valued in the Indian space only being surpassed by Paytm and Walmart majority owned Flipkart.
Starting from just one hotel in Gurgaon, The region where it’s headquartered, Oyo has grown to around 125,000 rooms in India and 87,000 rooms in China which it counts as its major markets accounting for a main part of the over 350 cities in operates in total.
