Hotel aggregator giant Oyo Rooms is soon to close the $90-million (Rs 600 crore) financing round by Japanese conglomerate SoftBank Corp.
Ritesh Agarwal-led company has already received $61 million (Rs 407 crore) and is slated to receive rest of the amount as a mix of equity and debt.
This is SoftBank’s first major funding in Indian investments after the exit of its president Nikesh Arora.
Existing investor Greenoaks Capital, Sequoia Capital and Lightspeed Venture Partners did not participate in this round of funding, according to the documents filed by Oravel Stays Pvt. Ltd (company that owns Oyo Rooms) in Registrar of Companies.
Oyo Rooms is also getting $5 million (Rs 33.4 crore) in debt financing from InnoVen Capital, the Times of India reported.
The company, considered one of the largest budget hotel aggregator of India, had raised $100 million (over Rs 668 crore) funding round by SoftBank Corp, Lightspeed Venture Partners, Sequoia Capital India, and Greenoaks Capital, Business Standard said in a report.
The company then raised $100 million from existing investors including Softbank, Sequoia Capital, Lightspeed Venture Partners, Greenoaks Capital, DSG Consumer Partners and Venture Nursery in April this year too.
The company is also expected to announce its merger with Zo Rooms very soon.
Oyo is being valued at around $650 million-$700 million (Rs 4340-Rs 4676) after the latest round of funding.
It has 5,855 hotels in its network with a total inventory of 68,300 rooms. The company is aiming to triple its inventory by December 2016.
In May this year, Oyo said that it had managed to achieve unit profitability at an aggregate level across its presence in 170 cities of India.