Oyo Rooms keeps making the news. While there was news that the Oyo Rooms’ business is slowing down and that the Zo Room acquisition might not go through due to a cash crunch, this investment news will give a financial boost to the company.
In a series D round (fifth round), Oyo Rooms has raised $100 million from its existing investor Softbank and a group of other investors.
Apart from Softbank, other investors are part of an international sovereign fund, Sequoia Capital, Lightspeed Venture Partners, Greenoaks Capital, DSG Consumer Partners and Venture Nursery.
The raised capital of $100 million will be used for expansion purposes. The investment has certainly come as a surprise given that the funding scene has gone dormant in many verticals while edu-tech startups are on the rise.
Also Read: Sachin Tendulkar invests in Smartron
The budget hotel startup had also raised the same amount of $100 million in series C round also led by Softbank. In a report published in HT, as per a person who knows of the deal said:
The term sheet has been signed and the company is looking at expanding its operations domestically
After its acquisition of Zo Rooms early this year, Oyo Rooms has become the single largest aggregator of hotel rooms in India. Present in more than 170 cities with 65,000 rooms in 5,500 hotels, Oyo Rooms has seen an astronomical rise ever since its inception 3 years ago. Given that the budget hotel business is a $20 billion industry and just 15% penetration through online booking, there is a lot of scope and room for them to grow. Sure, a number of competitors will come up but given that Oyo Rooms has already gone global, they are entering into a zone where they are becoming ‘too huge to fail’.
Interesting times ahead for Oyo Rooms. Keep a check on this space for more.