Oyo Hotels & Homes will be raising US$1.5 billion in its latest funding round, of which a significant amount will go towards the company’s expansion in the US market, and strengthening its position in the vacation rentals business in Europe.
As a part of this Series F round, RA Hospitality Holdings will infuse approximately US$700 million as primary capital in the company, with the balance US$800 million being supplemented by other existing investors.
Earlier this year, Oyo announced that RA Hospitality Holdings has received CCI approval to invest US$2 billion in the company.
The company’s strong growth, improved margins and improvements in customer experience has led to the signing of a US$2 billion primary and secondary management investment round, spearheaded by founder and CEO, Ritesh Agarwal, with support from institutional banks and financial partners, said the company in a statement.
Prior to this, Oyo had raised over US$1 billion in its last financing round, announced on 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.
Ritesh Agarwal, founder & CEO (global), Oyo Hotels & Homes, said: “I am also happy to share that on a year-on-year 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 per cent on a year-on-year basis. The losses as a percentage of NRV have also been on a steady and significant declining curve.”