OYO to raise new funding round at $1 Billion valuation
11th, June 2019 - News
Oyo Hotels & Homes is in talks for a fresh round of funding, which is likely to see the seven-year-old startup’s valuation hit the $10-billion mark. This will make it one of the most valuable new-economy ventures from the country, according to three sources familiar with the development. The Gurgaon-based company, founded by a teenaged Ritesh Agarwal (now 25) in 2012, is in talks to raise about $1 billion in fresh capital, for which it is in discussions with both new investors and existing backers like SoftBank.
“They are looking at a valuation of around $10 billion for the new round, for which they will hit the road next quarter,” said one of the sources mentioned earlier. “The company is looking at a new lead investor and there is high interest from both financial and strategic investors.”
SoftBank, which has led the last four funding rounds for Oyo since 2015, holds a little over 46% stake in the company right now after investing $1 billion. The expected bump in the valuation and fund-raise comes at a time when Oyo has aggressively expanded into global markets, especially in China and Europe, making it the sixth largest hotel chain in the world. A majority of the revenues for the company also come outside India, as it has also expanded to Southeast Asia and Japan.
This is speculation. Oyo Hotels & Homes has a very healthy balance sheet and we are not in talks with any investors. We don’t have any further comments,” said an Oyo spokesperson.
If the deal goes through, it will make Oyo the most valued startup along with Paytm, which was valued at $10 billion when it raised $300 million from Warren Buffett’s Berkshire Hathway in August 2018. Paytm is also in talks for a fresh round of funding, as reported by TOI in its March 28 edition, which would increase its valuation to $17-18 billion. Ride-hailing major Ola was recently valued at $6.2 billion, while education technology startup Byju’s is valued at $5.4 billion.
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