The home-grown hotel aggregator is plush with funds, as in yet around round of funding, the company has raised 250 million USD, roughly INR 1600 crores. Hero Enterprise has joined as a new investor along with existing investors – Softbank, Sequoia India, Lightspeed and Greenoaks Capital. The latest round of funding is likely to be aimed at expanding OYO’s footprints in the South-East Asian market.
OYO – India’s largest hospitality company – has raised $250 million (INR 1600 crores) in a Series D financing round led by SoftBank through SoftBank Vision Fund. The sum was raised with participation from existing investors – Sequoia India, Lightspeed Venture Partners and Greenoaks Capital. Hero Enterprise has also joined the round as a new investor.
Speaking about the development, Ritesh Agarwal – Founder and CEO, OYO said “we are now focusing on further accelerating network coverage to consolidate our leadership in economy through OYO Rooms and mid-market category through Townhouse brands. We will also deploy fresh capital to take our made-in-India business model to international markets which are characterised by a similar supply-demand imbalance in real-estate and hospitality.”
Justin Wilson, SoftBank’s Board representative on OYO remarked that OYO had solidified its position in India as the leading accommodation brand for consumer affordability and high-quality standards. “We’re excited to continue to support OYO as they further expand their position in India and bring the OYO promise of affordability and elevated hospitality to other markets around the world,” he said.
Sunil Kant Munjal, Chairman, Hero Enterprise commented, “as a business family, we have always set new paradigms; so OYO’s unique business model excites us. The differentiated thinking and ingenuity that Ritesh and his team bring to this industry gives us confidence that OYO can scale, innovate and set new benchmarks in customer experience. We are delighted to join other marquee investors in OYO’s exciting journey towards becoming a global brand.”
Sharing more details on the growth strategy, Ritesh elaborated, “The deal reinforces investor confidence in our unique business model and our view of the hospitality and short-stays opportunity in India. Our teams have developed industry-leading expertise undertaking the world’s fastest hotel transformations. The fresh capital infusion will support our organic expansion to newer markets in India and abroad. It will also enable us to bring additional resources to accelerate enhancement of customer experience and strengthen our technology stack.”
Oyo has only some months ago launched its operations in the international territory, and closer home, in Nepal. In the Southeast Asian market, it is likely to be pitted against Airbnb – which remains unchallenged and holds pole-position in the market. The extra infusion of capital will significantly aid the company in bolstering marketing and outreach.