SoftBank, others hand over $1 bn to OYO chief Ritesh Agarwal

OYO founder and chief executive officer Ritesh Agarwal on Tuesday made a major mark in the Indian start-up space when the new-age firm for booking reliable rooms announced raising $1 billion in the Series E round.

South Asia’s largest hotel chain with 125,000 rooms, OYO raised $800 million in the latest round led by SoftBank Investment Advisers (SBIA) through SoftBank Vision Fund.

Existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital also participated in this round. The hospitality chain also confirmed receiving a commitment of an additional $200 million taking the total to $1 billion.

The funds, according to the company statement, will support its efforts to further strengthen its market position in India and China, and support international expansion.

According to Agarwal, OYO Hotels has grown to become the most preferred brand in both economy and mid-market segments in a short span. “We have already started expanding our presence to newer segments, with OYO Home, OYO Townhouse and more recently Palette Resorts by OYO. We will continue to explore newer businesses while remaining focused on both organic and inorganic growth,” said Agarwal, a 24-year college drop out from Bissamcuttack, a census town in Rayagada district, Odisha.

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In the last 12 months, the company has increased international footprint to countries like China, Malaysia and Nepal. Its most recent foray was in the UK market.

“With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent. We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global,” said Agarwal.

Source: DNA Money