Softbank infuses $90 million funding in OYO Rooms
Budget hotel brand OYO Rooms closes its financing round at $90-million. Investment was made in two tranches- company received $61 million at first and later $29-million, mix of equity and debt from its largest shareholder, Japan’s SoftBank Group Corp.
Since 2014, SoftBank has supported Indian start-ups at many occasions. It has backed e-commerce platforms like Snapdeal, real-estate housing websites and Ola, the cab service provider. SoftBank has invested about $1 billion in these three companies before between October and December 2014. It plans to contribute another $10 billion to India in the next 10 years.
This crucial news comes at a time when investors have become careful about their investment plans in India, especially with start-ups. Oyo’s existing investors including Greenoaks Capital, Sequoia Capital and Lightspeed Venture Partners did not participate in the funding process.
The budget hotel aggregator's valuation was around $400 million. The latest Oyo is planning to take $5 million debt from InnoVen Capital.
Oyo was planning to raise Rs.413 crore through a proposed rights issue of shares to its existing shareholders. This was revealed from documents filed by Oyo with the Registrar of Companies
When contacted, Dinesh R, CHRO of OYO rooms, did not respond to People matters on this development.
Budget hotel brand, Oyo rooms is spread across 209 cities across India with 68,300 rooms through 5,855 partners. It aims to triple inventory by the end of 2016. Oyo offers standardized stay experiences at an unmatched price to all.