your password has been reset successfully, Please login again.

Oyo Turns to $10 Billion After Raising Series F Funding Round

According to several media reports, Ritesh Agarwal, Founder of Oyo, will be pumping around $700 million in the hospitality company in the current funding round.
BY Jaspreet Kaur
Feature Writer, BusinessEx
Oct 08,2019

Entering in new hospitality spaces--Oyo Townhouse and Oyo Life--the parent company, Oyo Hotels and Homes is speeding its way to conquer the hospitality sector globally. After foraying in Kolkata city to expand its nexus under the Oyo Life brand, the company is now reportedly raising $1.5 billion funding round.

The Gurugram-headquartered hospitality firm is one of the biggest fundraising rounds to date, from its investor, SoftBank and Founder, and CEO of Oyo, Ritesh Agarwal, stated Mint.

According to the cited media report, the amassed funds from investors will be employed to increase Oyos presence in the US, which is one of the fast-paced markets. Further, it will be utilized to strengthen its vacation rentals business in Europe.

Buyback Shares

According to several media reports, Ritesh Agarwal, Founder of Oyo, will be pumping around $700 million in the hospitality company in the current funding round.

With this transaction, the valuation of Oyo will be incremented to $10 billion. While the existing investment companies like Airbnb and Greenoaks Capital will infuse $800 million in the round, stated Mint citing the companys statement.

By ploughing in money, the Oyo founder plans to increase his stakeholding by three times. He will be procuring stakes from existing investment companies, Lightspeed and Sequoia. The transaction will be carried out through the business entity, RA Hospitality Holdings, stated The Star Online citing the companys statement.

The cited media report stated that Mizuho Financial Group Inc. and Nomura Holdings, the Japanese banks are financial advisers to Oyo.

As Oyo will be valued at $10 billion following the funding round, the company will be surpassing the most valued payment startup, One97 Communications, which runs Paytm. In the previous year, the US-based firm, Walmart had acquired the Indian e-commerce giant, Flipkart for $16 billion.

Further, investments made by Softbank had surged valuations of Paytm, WeWork and Paytm.

The hospitality firm, Oyo encompasses over 35,000 hotels and 125,000 vacation homes as well as over 1.2 million homes.

In September last year, the Indian hospitality company had amassed over $1 billion from SoftBank, including existing investment companies Sequoia, Greenoaks Capital, Lightspeed Venture Partners and new investors like Airbnb. The company has raised more than $3 billion in funds to date.

Oyos founder, Agarwal initiated the company when he dropped the college and was wandering around India in a meager budget. The inconsistent standards to hotels stimulated him to open a hospitality business and provide seamless service to travelers.

To become an Oyo-listed hotel, the hoteliers need to agree to revamp their business altogether. After this, they become listed on Oyo and receive an Oyo sign in the frontal part of their edifice. The company charges nearly 25 per cent for every room booking from listed hoteliers.

Please add your Comment
SIMILAR Articles
October 19, 2019
The fund will primarily infuse money in firms based in India, as well as Southeast Asia, that have a ...More
By Jaspreet Kaur
October 19, 2019
Recently, SoftBank Group, one of the largest stakeholders of WeWork, has taken a move to save the co ...More
By Jaspreet Kaur
October 18, 2019
The acquiring firm, DoseFM has partaken in LightSpeed India’s Extreme Entrepreneur the previous year ...More
By Jaspreet Kaur
October 18, 2019
Centre for Innovation Incubation and Entrepreneurship (CIIE) proclaimed that Indian startup firms wo ...More
By Jaspreet Kaur
October 17, 2019
The company wants to employ the funds to create innovative solutions for enhancing user experience r ...More
By Jaspreet Kaur
October 14, 2019
The Mumbai-headquartered direct-to-consumer firm will use funds to reinforce its technology, enhance ...More
By Jaspreet Kaur
October 11, 2019
The startup decides to employ the funds to come out with new products and foray into India as well a ...More
By Jaspreet Kaur
October 10, 2019
Owing to its merits, Flipkart’s backer, Walmart has recently proclaimed a pilot program to track shr ...More
By Jaspreet Kaur
October 09, 2019
WeWork India, which is a joint venture (JV) between The We Company and Embassy Group, is planning to ...More
By Jaspreet Kaur
October 07, 2019
If a company wants to ace in the competition, then it needs to understand the importance of social e ...More
By Jaspreet Kaur
October 07, 2019
According to the media report, the investment will be made through two separate securitization and b ...More
By Jaspreet Kaur
October 04, 2019
The housing rental firm, Oyo Life initiates its operations in Kolkata city with over 20 managed buil ...More
By Jaspreet Kaur