The funds so raised will be primarily used for expansion. One of the people familiar with this development said,” The round is closed and now final formalities are being ironed out. The round is being led by SoftBank with participation of a few existing investors like Sequoia Capital” The company’s pre investment valuation is estimated at $200-300Mn.
“Great to see my portfolio company OYO rooms going places. It is exciting to be part of this kind journey getting unfolded from a startup now to be valued at USD 300 million,” said Sanjay Mehta.
OYO Rooms is a network of technology- enabled budget hotels. It currently has over 10,000 rooms in over 800 hotels in 40 major business and travel destinations including Delhi, Mumbai, Bangalore, Hyderabad, Pune, Chennai, Goa, Jaipur, Gurgaon, Noida, Ghaziabad, Manesar, Neemarana, Kolkata, Varanasi and many more to come. It was founded by Ritesh Agarwal in 2013 and is backed by Lightspeed Ventures, Sequoia Capital and Green Oaks Capital.
For SoftBank the OYO Rooms deal will be its fourth investment in India in the past 12 months, during which it has poured nearly $1 billion in Snapdeal, Ola and Housing.
Budget Stay startups are drawing attention from investor, evident by funding that took place recently. Treebo Hotels raised $6Mn from Matrix Partners India and SAIF Partners and Wudstay.com raised $3 Mn from Mangrove Capital Partners and Vikas Saxena.