The funds will also be used in strengthening OYO’s position in the vacation rentals business in Europe.
OYO Hotels & Homes will raise $1.5 billion, as part of its Series F funding round. This will value the firm at $10 billion.
Under this round, RA Hospitality Holdings will be investing approximately $700 million as primary capital in the company while the rest will be supplemented by existing investors.
A significant part of this round will be diverted towards expanding the company’s footprint in its fastest-growing market, the United States. These funds will also be utilized in strengthening OYO’s position in the vacation rentals business in Europe.
Ritesh Agarwal, Founder & CEO (Global), OYO Hotels & Homes, said, “The continued support of our investors like Softbank Vision Fund, Lightspeed, Sequoia Capital is a testament to the love, trust and relentless support of our asset owners and customers, hard work of all OYOpreneurs, and our commitment to making #LivingTheGoodLife a reality for over 3.2 billion middle-income people around the world. With the CCI approval now in place, the company will get a capital infusion of approximately $1.5 billion to support this mission, supported by me and other shareholders.”
“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 (earnings before interest, tax, depreciation and amortisation) has also improved by 50 per cent. The losses as a percentage of NRV have also been on a steady and significant declining curve. Our immediate goal is to make forward-looking investments so we can achieve our mission, while delivering on our fiduciary responsibility to our investors by building a sustainable business,” he further added.
Want to invest in a hospitality franchise? Visit Franchise India 2019, Asia’s Biggest Franchise & Retail Show, and give wings to your entrepreneurial dreams.