Oyo likely to raise $200 million at 2x valuation of $4.5-5 billion

Fundraise to help it take over budget hotel chain Motel 6

This report has been updated

Oravel Stays, the parent company of travel tech giant Oyo, is in preliminary talks to secure $200 million in a primary funding round, aiming to fuel its acquisition of G6 Hospitality, the owner of Motel 6, a well-known budget hotel chain in the US.

The SoftBank-backed company is seeking to close the funding at a valuation between $4.5 billion and $5 billion, much above its last valuation of $2.4 billion but still far from the peak of $10 billion.

The company is engaging with offshore institutional investors and private Indian investors