Budget hotel platform Oyo Rooms has raised $100 million in its fifth round of funding from existing investors including SoftBank, Sequoia Capital and an unnamed international sovereign fund, according to a report in Hindustan Times that quoted an unnamed source.
“The term sheet has been signed and the company is looking at expanding its operations domestically,” the source told Hindustan Times.
Prior to this round, in its three years of existence, Oyo had raised over $125 million in funding. In March 2015, it raised over $25 million in a funding round led by San Francisco-based Greenoaks Capital and Lightspeed and Sequoia at a valuation of $100 million. In August 2015, OYO Rooms raised $100 million funding led by SoftBank Corp and Lightspeed Venture Partners, Sequoia Capital India and Greenoaks Capital.
Earlier this year, Oyo Rooms, which is run by Oravel Stays Pvt. Ltd, acquired smaller rival Tiger Global-backed Zo Rooms.
It was reported that Oyo Rooms bought Zo Rooms in an all-stock deal, in which the founders of Zostel Hospitality Pvt Ltd, which runs Zo Rooms, will get a 7 per cent stake in the combined entity.
Oyo has emerged as the largest aggregator of hotel rooms in India, with 65,000 rooms in 5,500 hotels across 177 cities. It competes with startups like Wudstay, FabHotels, GoStays and Matrix-backed Treebo Hotels, which is reportedly in talks to raise $40 million to take on larger rivals like Oyo Rooms.
OYO marked its entry in the Southeast Asian market with the launch in Malaysia. In India, the company will focus on “pockets of profitability”, the source said.