Bengaluru: OYO Hotels & Homes, on Monday, said it will raise $1.5 billion, as part of its Series F funding round. As a part of the round, RA Hospitality Holdings’ will infuse nearly $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.

A significant part of the funds will be diverted towards continued growth in the US, and in strengthening the company’s position in the vacation rentals business in Europe.

Earlier this year, RA Hospitality Holdings’ received approval from the Competition Commission of India 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.

Prior to this, OYO had raised over $1 billion in its last financing round in 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.

"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)," said Ritesh Agarwal, founder and CEO (Global), OYO Hotels & Homes, in a statement.