OYO raises Series D financing

OYO raises Series D financing

OYO has raised $250 million (INR 1600 crore) in a Series D financing round led by SoftBank through SoftBank Vision Fund with participation from existing investors Sequoia India, Lightspeed Venture Partners and Greenoaks Capital. Hero Enterprise has also joined the round as a new investor. The investment will help OYO accelerate network coverage to consolidate brand leadership in economy (OYO Rooms) and mid-market (Townhouse) segments.

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 OYO’s offering of hassle-free and affordable stay accommodation, available anytime anywhere, at the touch of a button. The belief in the business model and market potential has been essayed by existing and new investors. According to Sunil Kant Munjal, Chairman, Hero Enterprise,  “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.

OYO’s teams have developed industry-leading expertise undertaking the world’s fastest hotel transformations. Over 95% of OYO’s demand comes through direct channels with no commissions to pay, and the business has a solid growth outlook. The fresh capital infusion will support organic expansion to newer markets in India. OYO will also deploy fresh capital to take its made-in-India business model to international markets which are characterised by a similar supply-demand imbalance in real-estate and hospitality.

 

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