Indian budget hotel booking company OYO Rooms is in talks with Chinese ride-hailing giant Didi Chuxing and co-working space operator WeWork to fundraise for its Chinese business, according to the Times of India citing people familiar with the matter.
OYO Rooms is looking to raise USD 500 million to USD 600 million for its China business, and USD 500 million for its India business, says the same article, adding that OYO’s China business will be valued at around USD 1.2 billion, while its India operations will be valued at USD 4.5 billion.
There have been multiple rumours about OYO Rooms’ fundraising. A cash injection from Tencent seemed to have been in the cards. But this, again according to the Times of India article, reportedly fell through, possibly due to disagreements about the valuation which was set at USD 2 billion.
If this goes forward, this deal will mark the second time Didi backs an Indian company. The first was ride-hailing service Ola in 2015
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