Oyo to raise $1.5 B Series F funding; Ritesh Agarwal to infuse $700 M through RA Hospitality Holdings
Gurugram-based hospitality unicorn OYO Hotels & Homes on Monday said it will be raising $1.5 billion as part of its Series F funding round. Ritesh Agarwal, Founder and Group CEO, OYO, through RA Hospitality Holdings, will be infusing $700 million as primary capital, and the remaining $800 million will be pumped in by the existing investors.
RA Hospitality Holdings has received CCI approval to invest nearly $2 billion primary and secondary management investments in OYO.
The funding will be focussed on Oyo's growth in the US, and to also strengthen its position in the vacation rentals business in Europe.
In September last year, Oyo raised $1 billion in funding led by SoftBank Vision Fund, with participation from existing investors - Sequoia Capital, Lightspeed Venture Partners, and Greenoaks Capital.
In a press statement shared by the company, Ritesh Agarwal, Founder and CEO (Global), Oyo Hotels, said,
"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."
He added, "I am also happy to share that on a Y-o-Y basis, we have seen that not only are we operating profitably at the building level, but at the same time, our EBITDA has also improved by 50 percent (on a Y-o-Y basis). The losses as a percentage of NRV have also been on a steady and significant declining curve. The growth across verticals in India and globally has been phenomenal, and we truly believe that we will be able to build a truly global brand out of India, while ensuring that the business is run efficiently and with a clear path to profitability. Our immediate goal, however, 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."
OYO today is present in over 338 cities and has over 590,000 rooms in China, in Indonesia it is present in over 100 cities and over 27,000 rooms, in the UK, it is present in 30 destinations and has over 3,500 rooms, and more recently in the US, with presence in 60 cities, 21 states, and over 7,500 rooms.
The team added that it has seen a 3.8x year-on-year growth in revenue this August, with over 1.2 million rooms under management across hotels and homes. The company already has a strong balance sheet of approximately $2 billion across group companies, a significant part of which will be further invested in the business, given the company’s focus on maintaining its growth momentum.
The company already employs over 20,000 OYOpreneurs, and has created opportunities for over 300,000 local hospitality enthusiasts around the world.
(Edited by Megha Reddy)