India: Oyo Rooms raising $100m from return backers SoftBank, Sequoia: Report

OYO Rooms founder Ritesh Agarwal. Photo: Ramesh Pathania/Mint

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.

Lightspeed Venture Partners, Greenoaks Capital, DSG Consumer Partners and Venture Nursery also participated in the latest round.

“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.

Also Read:

India: Oyo Rooms acquires struggling rival Zo Rooms in all-stock deal

India: Matrix-backed Treebo Hotels in talks with VC funds to raise $40m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.