Gurugram-based Hotel booking company OYO Hotels and Homes on Monday announced it will raise $1.5 billion as part of the latest round of funding. These funds will be infused in OYO's expansion in the US. It will also help the company strengthen its vacation rentals business in Europe. The latest round of investment is a part of OYO's Series-F funding.
As part of Series-F funding, RA Hospitality Holdings will infuse approximately $700 million as initial capital in the company, with the balance USD 800 million being supplemented by other existing investors, OYO Hotels and Homes said in a statement. A significant part of the funds will be diverted towards OYO's growing in the US, as well as in strengthening OYO's position in the vacation rentals business in Europe, the statement added.
The relationship we share with #AssetOwners is the bedrock of our business model. @oyoamerica's partnership with @Biz2Credit will help empower our asset owners by providing them with financial support to re-envision their businesses for success.https://t.co/iLe8N2NCNB— Ritesh Agarwal (@riteshagar) October 5, 2019
OYO Hotels and Homes Founder and CEO (Global) Ritesh Agarwal said the company has the continued support of its investors like Softbank Vision Fund, Lightspeed and Sequoia Capital to its commitment of "making #LivingTheGoodLife a reality for over 3.2 billion middle-income people around the world".
"With the Competition Commission of India (CCI) approval now in place, the company will get a capital infusion of approximately USD 1.5 billion for this mission, supported by me and other shareholders," he added.
Previously, OYO was reportedly in advanced discussions with the Lovely Professional University (LPU) to acquire their student accommodation assets. The report said OYO was planning to expand into areas beyond hotels with $200-million deal. Earlier in 2019, OYO also acquired Hooters Casino Hotel in Las Vegas. That was also OYO's first-ever deal in the US.
Last week, a Bengaluru-based delivery startup Dunzo raised 45 million dollars -- translating to roughly Rs 319 crore -- in a fresh round of funding from Lightbox, Google, 3L Capital, and STIC Investment & STIC Ventures. With the latest round of funding, Dunzo is now valued at around 200 million dollars. Dunzo has raised a total of 81 million dollars.
(With PTI inputs)