OYO is reportedly in advanced talks to raise up to $1 billion in a deal that could value it at over $4 billion.
It's turning out to be a big year for hospitality company OYO. In March it notched up its first major acquisition, two months later it expanded its global footprint by moving into China and is now close to turning profitable. But there's more. The company reportedly also has its eye on the coveted unicorn club.
According to The Economic Times, OYO is in advanced talks to raise up to $1 billion in a deal that could value it at over $4 billion - in the same league as Ola, India's largest taxi-hailing service. Citing people in the know, the report said that the Gurgaon-based startup is in talks with two consortiums, a combine of SoftBank Vision Fund and co-working giant We-Work, and a set of US-based strategic investors in the travel space. But it is yet to finalise things.
In India, the company currently boasts 100,000 keys across 230 cities and is racing towards profitability. Last December, the company had claimed that it had narrowed its losses by 27% to Rs 363.7 crore in 2016-17, mainly on account of a high degree of operating leverage in the business model. Industry sources also point out that OYO has hiked up the commission it charges hotels from 11-12% last year to over 20%.
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