OYO Hotels raises $1 billion to fund overseas push
Existing investors including SoftBank Vision Fund, Sequoia Capital and Lightspeed Venture Partners have put in $800 million, with commitments for another $200 million.
Hotel chain OYO Hotels has raised USD 800 million in fresh funds led by Softbank Vision Fund, making it the newest entrant in the India’s unicorn club. It has also received a commitment largely from the Japanese investor to further raise USD 200 million, the company said on Tuesday.
Existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital participated in the existing round.
The company did not reveal the valuation of the current round. However, according to sources, OYO could be now valued at about USD 3 - USD 4 billion.
Gurugram-based OYO has expanded its presence to five countries in just 10-12 months. The company is now present in India, China, Malaysia, UK and Nepal.
“The company will direct a significant part of the funds from this round of financing, approximately USD 600 million, into strengthening its position in China, which is still in the early stages of growth….” the company said.
OYO also plans to use the capital to scale its business in these markets, new geographies and invest further in technology and talent.
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