On Tuesday, 25th September, OYO a hotel chain said that it has raised a total of $800 million from SoftBank Investment Advisers(SBIA) through its Vision Fund. Existing investors also participated in the round of financing with investors like Sequoia, Greenoaks Capital and Lightspeed Venture Partners.
The hotel chain also confirmed that it has received a commitment of an additional $200 million which would then bring the total amount raised by the company to a billion dollars. The companies founder and CEO, Ritesh Agarwal said that over the last 12 month the company has grown its presence in India, Malaysia, China, U.K and Nepal.
Ritesh said in a statement “This additional funding of one billion dollars would be used to rapidly scale our business in these countries, the company would also use this money to invest in talent and technology”
He added, “The company would use the fresh capital raised to take their unique model to small hotel owners and create quality living spaces around the globe.” The financial advisors to OYO on this deal would J.P Morgan.
This new investment would value the company at $5 billion and OYO said that it would use $600 million into strengthening its position in China which is on its very early stages of growth. The rest of the funds would be used by the company to grow its position in India as well as 2 new markets.