Operated by Oravel Stays Pvt. Ltd., OYO Rooms is a branded budget hotel marketplace which has raised $250 million led by existing investor Softbank which is expected to invest $225 million. Other investors include Lightspeed Venture Partners India Pvt. Ltd, Sequoia Capital India Advisor Pvt. Ltd and Greenoaks Capital Partners LLC are expected to invest $25 million.
Valued at $850 million after this funding, the $225 million funding is the biggest funding for India in consumer space business. The latest round of investment will increase Softbank’s OYO shares to 42% from current 27%. According to VCCEdge, Softbank’s OYO investment includes $100 million in 2015 and $90 million in August 2016.
About SoftBank Group
SoftBank Group Corp. is a Japanese multinational telecommunications and Internet corporation established on September 3, 1981, and headquartered in Tokyo, Japan.
It has interests in broadband, fixed-line telecommunications, e-commerce, Internet, technology services, finance, media and marketing, semiconductor design, and other businesses.
SoftBank operates SoftBank Mobile in Japan, owns Sprint Corp. in the U.S., holds stakes in Chinese e-commerce Alibaba Group Holding Ltd. and Japanese internet portal Yahoo Japan Corp and owns ARM Holdings PLC.