Oyo Rooms, a budget hotel chain that is based out of Gurgaon, has recently entered the unicorn club after it raised a total of $1 billion from investors. The start-up raised a sum of $800 million from investors led by the Japan-based SoftBank and also received a funding commitment from its existing investors for another $200 million.
With this investment, Oyo Rooms has joined the unicorn club, i.e. private companies that are valued at $1 billion or higher. The Gurgaon-based start-up is the second company to check into the unicorn club this year.
After this round of investments, Oyo is valued at a little under $5 billion. Oyo Rooms made an announcement on September 25 that Lightspeed Venture Partners, Greenoaks Capital, and Sequoia have invested in the company in the current funding round. Oyo Rooms was advised by JP Morgan on the fundraising.
The recent funding will enable Mr. Ritesh Agarwal, the founder of Oyo Rooms, to continue expanding outside the country to West Asia, China, and other international markets. India and China are currently Oyo Rooms’ top markets and the company is expected to deploy the most resources in these countries, with Oyo saying it would invest up to $600 million in China to strengthen the company’s position.
Oyo Rooms has expanded its reach globally to five countries in just under a year. The company now has a presence in India, Malaysia, China, Nepal, and the UK. The company is also planning to expand to South-East Asia, West Asia, and Europe in the future.
Sources: Livemint, The Times of India