OYO Hotels & Homes, world's third-largest and fastest-growing chain of hotels, on Monday said it will raise USD 1.5 billion, as part of its fresh round of funding, to expand its footprints in the US and Europe. The company intends to utilise a significant part of the funds for expanding its business in OYO's fastest-growing market - the United States, and in strengthening the company's position in the vacation rentals business in Europe.
As part of its Series F funding round, RA Hospitality Holdings will infuse around $700 million as primary capital in the company, while existing investors SoftBank Group, Lightspeed Venture Partners, Sequoia India will invest the remaining $800 million, news agency PTI reported.
Commenting on the development, Ritesh Agarwal, the founder and CEO of OYO, 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."
"With the Competition Commission of India (CCI) approval now in place, the company will get a capital infusion of approximately USD 1.5 billion for this mission, supported by me and other shareholders," he added.
Last month, the Softbank-backed firm had acquired Copenhagen-based data science company Danamica to strengthen presence in European vacation rental market. In its first purchase in the US, Oyo Hotels and Homes had also bought the Hooters Casino Hotel in Las Vegas.
Earlier in July, Cayman islands-based company RA Hospitality Holdings and Oyo had filed a notification with the CCI seeking approval of the proposed combination of the entities. RA Hospitality had also signed $2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners, subject to regulatory and shareholder approvals.
Edited by Chitranjan Kumar with PTI inputs