SoftBank, Munjal’s Hero Enterprise, others invest $250 mn in Oyo

NEW DELHI: Hotels ag greg at or O yo (Oravel Stays Pvt Ltd) has raised $250 million from investors, including Soft Bank Vision Fund, ina much needed equity in fusion that spells SoftBank’s continued interest in the space and a renewed confidence in the company it entered in 2015.

The series D investment gives Oyo growth capital to scale its network and invest in its recently launched effort to create premium, self-managed hotels under the Townhouse brand. It also gives Oyo the muscle to fend off competition from large online travel agencies Make My Trip and Goibibo that joined forces in October last year.

A part of the capital is also likely to be invested in expansion in South East Asia. Oyo entered Malaysia and Nepal in January and April this year respectively.

Hero Enterprise of Su nil Mu njal joined the fund-raising asa new investor, with follow-on investors Sequoia India, Lightspeed Venture Partners and Greenoaks Capital. “We have always set new paradigms; so OYO’s unique business model excites us,” Munjal said.

While Oyo did not disclose its latest valuation, it is believed to be significantly higher than $460 million from the company’s last fund-raise in August last year.

“OYO has solidified its position in India as the leading accommodation brand for consumer affordability and high quality standards. We’ re excited to continue to support O YO as they further expand their position in India and bring the O YO promise of affordability and elevated hospitality to other markets around the world,” said Justin Wilson, SoftBank’s nominee on Oyo’s board of directors.

“We are now focusing on further accelerating network coverage to consolidate our leadership in economy through O YO Rooms and mid-market category through Town house brands. We will also deploy fresh capital to take our made-in-India business model to international markets ,” Oyo CEO Ritesh Agarwal said.