Ritesh Agarwal Will Invest $ 700 Million in Oyo's New $ 1.5B Financing Round – TechCrunch

India's largest budget accommodation startup, Oyo Hotels and Homes, today said it plans to raise around $ 1.5 billion as part of a new funding round when the startup looks to expand its footprints in the US and Europe .

Ritesh Agarwal, the founder and CEO of Oyo, said he will invest $ 700 million in the startup's new financing round – Series F – as he looks to buy several shares in the company, which has already become one of the largest hotel chains in Asia. Existing investors SoftBank Group, Lightspeed Venture Partners, Sequoia India will also participate in the round, which will value the six-year-old startup at $ 1[ads1]0 billion.

In a statement, the 25-year-old founder said that "continued support from our investors such as SoftBank Vision Fund, Lightspeed, Sequoia Capital is a testimony to the love, trust and relentless support of our property owners and clients."

He let that the startup, which today operates in over 80 markets and manages over 1.2 million rooms, "can build a truly global brand out of India while ensuring that the business is run efficiently and with a clear path to profitability." [19659002] Oyo, which employs about 20,000 people, said it maintains a strong balance of around $ 2 billion across various verticals and plans to invest a significant portion of it in the business. Agarwal said the startup "operates profitably at the building level. but at the same time EBIDTA has also improved by 50% ”over the past year.

Oyo, which entered China last year, claims to have 590,000 rooms there and presence in 332 cities. it established presence in 21 states and 60 cities. In August, Oyo Hooters Casino Hotel bought Las Vegas in its first US property purchase for around $ 135 million. In the same month, the company said it invested $ 335 million in its rental business in Europe. In May, Oyo Leisure Group bought for $ 415 million in a major Europe push.

Agarwal's pressure to increase its stake in the company remains a bold and unprecedented story for start-ups in India. In July of this year, he said he planned to spend $ 2 billion through a unit called RA Hospitality Holdings to increase his stake in the company from 10% to 30%. Early investors Lightspeed and Sequoia have agreed to sell part of their stake in the startup. Start-up founders and investors cheered on the go.

The $ 10 billion valuation makes Oyo one of the most valuable startups in India after the financial company Paytm and e-commerce giant Flipkart, which sold the majority stake to Walmart last year for $ 16 billion. The growth of Oyo would also provide some comfort for SoftBank, which has seen some of its recent efforts – in WeWork and Uber – deviate from the plan.

Prior to today's announcement, Oyo had raised around $ 1.7 billion – $ 1 billion of which came from last year's funding round. Oyo today considers Airbnb as one of its investors.

Source link

Back to top button