Budget hotel platform Oyo Rooms has raised $100 million in its fifth round of funding from existing investors including apan’s Softbank, and an international sovereign fund, a person with knowledge of the deal said. Other investors are Sequoia Capital, Lightspeed Venture Partners, Greenoaks Capital, DSG Consumer Partners and Venture Nursery.
“The term sheet has been signed and the company is looking at expanding its operations domestically,” the person said.
Founded in 2013 by Ritesh Agarwal, Oyo rooms is one of the largest aggregator in Hotel rooms in the country. The company has already raised a total of $125.65 million in four rounds. The company acquired Zo Rooms recently, which almost had a similar revenue.
Currently, the company offers 65,000 rooms in 5,500 hotels across 177 cities. With these figures riding on its back, it has raised around US $125.65 million funding in four rounds. Recently, it has also acquired its competitor Zo Rooms, which was backed up by the Tiger Global. Oyo Rooms has also spread its wings internationally as well and recently started its operations in Malaysia as well.
Oyo typically picks up 10-15 rooms in an existing budget hotel, refurbishes them, standardises the look and feel, and ensures quality a tad better that what the hotel gives. In the past six months, there has been a lot of focus on hotel business since the margins are higher compared to what they earn from selling flight and train tickets.