OYO raises USD 1 bn to fund overseas expansion

Hospitality firm OYO Tuesday announced raising USD 1 billion (around Rs 7,280 crore) in a fresh round of funding led by Japan's SoftBank group for further expansion in India, China and other countries.

The company has already raised USD 800 million and has further commitment of USD 200 million, OYO said in a statement.

The latest funding round led by SoftBank Investment Advisers (SBIA) through SoftBank Vision Fund also saw participation from other existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital, it added.

Post the latest funding round, OYO Group will be valued at USD 5 billion, a highly placed source said on condition of anonymity.

Commenting on the development, OYO founder and chief executive Ritesh Agarwal said: "In the last 12 months, we have increased our footprint to five countries -- India, China, Malaysia, Nepal, and more recently in the UK. With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent."
In a similar vein, Lightspeed India Partners Advisors MD Bejul Somaia said: "It's exciting to see OYO's success in scaling the India business while extending their pioneering asset light, controlled-experience model to international markets."