OYO, the budget hotel chain startup has bagged a massive $104 million (Rs 732 crore) in fresh funding from Singapore based ride-hailing firm Grab. The details come out as the Gurgaon-headquartered filed their latest filings with the Registrar of Companies (RoC). As per the details, the firm is now valued about $4.3 billion.
Notably, the fundraising talks between the two firms were going for a while and it was first reported by The Economic Times which suggested that the two firms are close to signing the deal. There’s no confirmation about the funding round as in was the round part of the larger funding round where the firm has planned to raise $1 billion.
Interestingly, both the firms count Japanese conglomerate Softbank as the major backer. Grab had acquired the south-east Asian business of their rival Uber earlier in the year. While OYO has been expanding their presence across the globe very rapidly. They recently launched their operations in China and New Zealand. It has already made inroads in the markets of United Arab Emirates, Indonesia, and the United Kingdom.
It had raised about $600 million for the launch of their Chinese operation which the firm terms as the core market alongside India. Started in 2013 by Ritesh Agarwal, the firm has a network of budget hotels which it connects to the users through the mobile app. Apart from SoftBank, the other marquee investors include Lightspeed Venture Partners, Greenoaks Capital, and Sequoia Capital India.
The company says that it has now a network of hotels in more than 350 cities across 6 countries. The fresh funds will surely allow the firm to ramp up their fresh operations across the globe.
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