NEW DELHI (Reuters) – Hotel chain OYO Hotels said on Tuesday it would raise $ 1 billion from existing investors, including Japanese group Softbank 9984.T, to develop its activities in India and China, and to expand into new international markets.
In the latest round of funding, which could value OYO at around $ 5 billion, it has already raised $ 800 million from investors led by Softbank’s Vision Fund, the world’s largest private tech investor, and Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital.
Investors have pledged to invest an additional $ 200 million, OYO said.
Markets such as Southeast Asia and the Middle East, which have a large number of unbranded hotels, offer the budget accommodation provider the potential to grow, said OYO Founder and CEO , Ritesh Agarwal.
“As we double our investments in domestic markets, we will open up new geographies in the future,” Agarwal told Reuters. “We have a very big opportunity all over the world. “
OYO plans to invest $ 600 million of the new funds in China, where the hotel aggregator has expanded to 171 cities and 87,000 rooms since its launch in the country about 10 months ago. The company will use the remaining funds to expand in India and enter new markets.
India’s fastest growing hotel chain will continue to diversify its hotel portfolio and target middle and low-income travelers, Agarwal said.
Founded in 2013, OYO partners with independent and small-scale hotel owners and works with them to standardize rooms and services before selling OYO-branded rooms to travelers through its website and other partners. of travel.
OYO has hotel rooms in more than 350 Indian cities and countries such as China, Malaysia and Nepal. He recently entered Britain with the intention of signing 300 independent hotels by 2020.
(This story corrects the CEO’s second name to Jain’s Agarwal)
Report by Aditi Shah; Editing by Gopakumar Warrier and Sherry Jacob-Phillips