Oyo Raises $1 Billion; Becomes India’s 2nd Most Valuable Startup With $5 Billion Valuation!
Oyo wants to expand into international markets, and this recent funding will help them to achieve that.
Made in India startup Oyo Rooms has broken yet another record. In their latest round of funding, Oyo has successfully raised $1 billion, at a valuation of $5 billion.
This makes them India’s 2nd most valuable startup after Paytm. Flipkart, which was India’s most valuable startup has been acquired by Walmart, hence, not in the race.
What will Oyo Rooms accomplish with the latest round of funding?
Keep reading to find out more!
$1 Billion Funding For Oyo Rooms Confirmed!
As per latest reports coming in, Oyo Rooms has successfully raised $1 billion from SoftBank, which is their primary investor.
Besides, existing investors: Lightspeed Venture Partners, Sequoia and Greenoaks Capital have also participated in the funding round.
Softbank Vision Fund will initially infuse $800 million; and later, a commitment of $200 million has been made, thus taking the total to $1 billion investment.
Objective Of This Recent Funding?
As per incoming reports, the main objective for Oyo’s $1 billion funding is expansion into overseas market.
Besides India, Oyo Rooms is right now present in China, Malaysia, UK and Nepal.
As per a statement issued, almost 60% of the $1 billion fresh funding received will be routed into China alone, where they began operations last year.
A company statement said, “The company will direct a significant part of the funds from this round of financing, approximately $600 million, into strengthening its position in China, which is still in the early stages of growth…”
Oyo’s expansion into these countries, out of India, began in the last 12-18 months.
Oyo Is Now India’s 2nd Most Valuable Startup!
Oyo’s latest round of funding: $1 billion, has been made at a valuation of $5 billion.
This makes them India’s 2nd most valuable startup after Paytm, which had recently crossed $10 billion valuation.
Oyo Rooms founder Ritesh Agarwal said, “We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global.”
Launched in 2013, Oyo now has presence across 350 cities in 5 countries: India, China, Malaysia, Nepal, and the UK. Oyo now provides more than 211,000 franchised and leased rooms in these 350 cities. They claim to serve 125,000 stayed room nights, per day, across the world.
In China, where they began operations last year, they have expanded into 171 cities, right now provides 87,000 rooms for their guests.