OYO – India’s largest hospitality company – has raised $250 million in a Series D financing round led by SoftBank through SoftBank Vision Fund.
The funding has seen participation from existing investors Sequoia India, Lightspeed Venture Partners and Greenbacks Capital as well as new investors like Hero Enterprise.
Speaking about the development, Ritesh Agarwal, Founder & CEO, OYO said, “In less than four years, OYO has become India’s largest hospitality company in terms of network presence and inventory. Travellers and city-dwellers alike have embraced our offering of hassle-free and affordable stay accommodation, available anytime anywhere, at the touch of a button.”
“We are now focusing on further accelerating network coverage to consolidate our leadership in economy through OYO Rooms and mid-market category through Townhouse brands. We will also deploy fresh capital to take our made-in-India business model to international markets which are characterised by a similar supply-demand imbalance in real-estate and hospitality,” added Agarwal.
Justin Wilson, SoftBank’s Board representative on OYO remarked, “OYO has solidified its position in India as the leading accommodation brand for consumer affordability and high quality standards. We’re excited to continue to support OYO as they further expand their position in India and bring the OYO promise of affordability and elevated hospitality to other markets around the world.”
Sunil Kant Munjal, Chairman, Hero Enterprise, added, “The differentiated thinking and ingenuity that Ritesh and his team bring to this industry gives us confidence that OYO can scale, innovate and set new benchmarks in customer experience. We are delighted to join other marquee investors in OYO’s exciting journey towards becoming a global brand.”
Sharing more details on the growth strategy, Ritesh elaborated, “We are developing capabilities to add 10,000 rooms to our network each month. Over 95% of OYO’s demand comes through our own channels with no commissions to pay, and the business has a solid growth outlook. The fresh capital infusion will support our organic expansion to newer markets in India and abroad. It will also enable us to bring additional resources to accelerate enhancement of customer experience and strengthen our technology stack.”