KUALA LUMPUR, 7 October 2019 – OYO Hotels & Homes announced that it is raising $1.5 billion, as part of its Series F funding round.
As a part of this round, RA Hospitality Holdings’ will infuse approximately $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.
According to OYO, a significant part of the funds will be diverted towards continued growth in OYO’s fastest-growing market the United States, and in strengthening the company’s position in the vacation rentals business in Europe.
Earlier this year, RA Hospitality Holdings’ received CCI approval to invest $2 billion in OYO.
“In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help the Founder increase his stake while remaining invested and committed to the company’s long-term mission,” it stated.
Prior to this, OYO had raised over $1 billion in its last financing round, announced on September 2018, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.
Ritesh Agarwal, Founder & CEO (Global) of OYO Hotels & Homes, said, “With the CCI approval now in place, the company will get a capital infusion of approximately $1.5 billion to support this mission, supported by me and other shareholders.”
“I am also happy to share that on a Y-O-Y basis, we have seen that not only are we operating profitably at the building level but at the same time our EBITDA has also improved by 50% (on a Y-o-Y basis). The losses as a percentage of NRV have also been on a steady and significant declining curve,” Ritesh added.