Business

Oyo Rooms Raises $1 Billion In Funding For Expansion In China

JAVED SAIFI | 0
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| September 25 , 2018 , 14:52 IST

OYO rooms, one of the most developing start-ups in the country was in talks to raise $1 billion to expand its business across China, and Finally, it has raised $800 million from Softbank vision fund and $200 million from a Japanese investor, company said on Tuesday.

After the investments, the company's market capitalisation value reached $4 billion.

Ritesh Agarwal, founder and chief executive of OYO rooms was quoted by the Mint as saying, “We will continue to explore newer businesses while remaining focused on both organic and inorganic growth.”

“We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global,” he added.

Also Read: Ritesh Agarwal's OYO Rooms To Attain $4 Billion Market Cap

The company also said that it will use a significant part of $600 million fundings to strengthening its position in China. Oyo has over 125,000 rooms in India and about 87,000 rooms in China’s 171 cities.

Munish Varma, Partner, SoftBank said, “With a promise to deliver good quality accommodation at affordable prices, OYO has grown exponentially to become the largest hotel chain in South Asia, and is swiftly expanding to international markets. We are tremendously excited to be a part of OYO’s successful journey.”

The Gurgaon-based startup, OYO was founded in 2013 by Ritesh Aggarwal and has grown immensely in a short span of time. This enormous amount of investment will surely help the company to grow.

This year, OYO acquired Weddingz, an online marketplace for wedding venues and vendors, Novascotia Boutique Homes in March and AblePlus, the Mumbai-based Internet of Things (IoT) startup in July.