OYO Rooms raises $100 million from SoftBank, others
The company will spend the money to enhance customer experience, strengthen technology and launch other initiatives to accelerate growth
Bengaluru: Budget hotel aggregator OYO Rooms has raised $100 million in a Series B funding round led by Japan’s SoftBank Group, the company said in a statement on Monday. Existing investors Greenoaks Capital, Sequoia Capital and Lightspeed Venture Partners also participated in the round.
The company said it will spend the money to enhance customer experience, strengthen technology and launch other initiatives to accelerate growth. OYO had raised $650,000 in a seed round from DSG Consumer Partners and Lightspeed Venture Partners in May last year, followed by a $25-million Series A round in March.
“We are at the forefront of solving a problem of lack of predictability of experience across hotels in the country. Our vision is to provide a standardized experience to anyone looking for a place to stay when not at home,” said Ritesh Agarwal, founder and chief executive at OYO Rooms.
The company claims to have more than 12,000 rooms in 70 cities, including Delhi, Gurgaon, Mumbai, Bengaluru, Hyderabad, Goa, Chennai and Kolkata. OYO competes with firms such as Stayzilla, Zo Rooms, Zen Rooms, Zip Rooms, FabHotels and GoStays. While Stayzilla raised $20.5 million from Nexus Venture Partners and Matrix Partners earlier this year, Zo Rooms received $15 million in a Series A round from Tiger Global Management and Orios Venture Partners in July.
The sector has seen interest from senior industry executives as well, who have made personal investments in companies. For instance, Zen Rooms has raised less than $1 million from Sanjay Aggarwal, former chief executive at Kingfisher Airlines, and Kaneswaran Avili, former chief commercial officer at SpiceJet.
OYO Rooms was founded by Agarwal in 2013. The 21-year-old had earlier founded Oravel, which was modelled on Airbnb, an online accommodation rental platform.
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