Indian hospitality company Oyo Hotels & Homes (OYO) is looking to raise $1 billion in fresh capital from new and existing investors at a valuation of $10 billion as it aggressively pushes for overseas expansion, The Times of India reported.
While existing investor SoftBank may also contribute, OYO is looking at getting a new lead investor for the new round that is likely to hit the road in the next quarter. SoftBank has already pumped in about $1 billion and currently holds about 46 per cent stake in the seven-year-old startup founded by one of the youngest entrepreneurs in India Ritesh Agarwal.
OYO has, however, denied any fundraising talks at the moment.
“This is speculation. Oyo Hotels & Homes has a very healthy balance sheet and we are not in talks with any investors,” an OYO spokesperson was quoted saying this in the report.
The fresh financing is, however, likely to give a boost to OYO’s overseas presence and also make it India’s one of the most valuable startups.
Globally, OYO has a footprint in more than 800 cities across 24 countries, including Malaysia, Nepal, the UK, UAE, Indonesia, Saudi Arabia, the Philippines and more recently, Japan. It counts India and China as two of its biggest markets.
Last month, it claimed to have become the second-largest hotel group in China within about 18 months of its foray into the country. In China, OYO has expanded its presence to nearly 10,000 OYO-branded hotels and 450,000 rooms across 320 cities.
Aside from SoftBank Vision Fund, other investors in OYO include Sequoia Capital, Lightspeed Ventures, Hero Enterprise, and China Lodging Group.
According to Crunchbase, OYO has already raised about $1.7 billion in funding till date.
In April, it raised about $75 million in a Series E funding round from San Francisco-headquartered home renting firm Airbnb. While it is still unclear if the Series E funding round is now closed, Gurugram-based OYO has reportedly mopped up nearly $1.2 billion in Series E round, which began in September last year.
In February, it reportedly raised $100 million from China’s ride-hailing giant Didi Chuxing. In December, it raised $100 million in a Series E round of funding from Singapore ride-hailing company Grab to expand its services in Southeast Asia.
In September last year, OYO garnered $800 million from investors led by Softbank Vision Fund, Lightspeed Venture Partners, Sequoia Capital, and Greenoaks Capital. It was valued at about $5 billion then.
OYO is also building a war chest as it seeks more acquisition opportunities, the report said.
It has already executed five acquisitions since inception. Last month, it announced the acquisition of Amsterdam-based @Leisure Group, a vacation rental company, from media and technology firm Axel Springer, for an estimated €369 million.