The fast-growing Indian hospitality industry, Oyo, has been valued at $ 10 billion after its founder, Ritesh Agarwal, bought $ 2 billion in shares from venture capital firms Sequoia Capital and Lightspeed Venture Partners, the company announced Friday.
Agarwal, 25, founded Oyo in 2013 at the age of 19 years. Following tremendous growth in the now global hotel chain, Agarwal chose to increase its 10% stake to 30% via a Cayman Islands company, named RA Hospitality Holdings, according to The Wall Street Journal. SoftBank has also increased its percentage as part of this round, and now owns almost half of the company.
Oyo has increased half a billion dollars in equity financing to date, and achieved a $ 5 billion valuation at the last funding round. Other investors in the company include Airbnb, Grab Holdings and Didi Chuxing.
Oyo is active in 800 cities in 80 countries, with over 23,000 hotels in the portfolio. Recently, the company announced plans to invest $ 300 million in the US market, currently operating more than 50 Oyo hotels in 35 cities and 1
Earlier this week, the Gurgaon headquarters introduced the company Oyo Workspaces. The new unit was born out of its acquisition of Innov8, a collaboration with more than 200 employees. The four-year startup was bought for around $ 30 million, according to reports from TechCrunch's Manish Singh.