Chinese ride hailing giant Didi Chuxing invests $100M in OYO; eyes expansion
Chinese ride-hailing giant Didi Chuxing has invested $100 million in Delhi-NCR based hospitality chain OYO Hotels and Homes.
According to media sources, the investment has been made from Didi-controlled entity Star Virtue Investment. OYO will continue to be valued at $5 billion with this round of funding.
The latest investment is likely to be used in OYO’s China business and its India operations, said media reports quoting sources.
This investment also brings to a close OYO’s $1 billion financing round led by existing investor SoftBank Vision Fund, which had invested $800 million into the company.
Ritesh Agarwal, Founder and CEO
An OYO spokesperson told YourStory, “We are happy to confirm that we have officially closed our $1 billion financing round, of which $900 million was closed in quarter ending 2018.We have also received the balance $100 million as disclosed in the RoC filings. We do not have any further comments.”
Last September, OYO locked in $1 billion in funding from SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital. It also received an additional commitment of $200 million from undisclosed investors. Soon after, in December 2018, Singapore’s cab-hailing company Grab invested about $100 million in the company. The company is also backed by investors such as China Lodging Group and Hero Enterprises.
The latest round is Didi’s second investment in an Indian unicorn. Earlier, in 2015, it had made an undisclosed investment in ride-hailing service provider Ola.
In November 2017, OYO had announced its foray into China by partnering Didi Chuxing. In over a year since its foray into the market, OYO is present in 171 cities in China with over 87,000 rooms. Southeast Asia is also one of the top markets for OYO, where the team is looking to aggressively grow and expand.