OYO Hotels and Homes has announced it is raising $1.5bn (£1.2bn) as part of its Series F funding round.
As a part of this round, founder Ritesh Argawal’s RA Hospitality Holdings’ will infuse approximately $700m (£567m) as primary capital in the company, with the balance $800 (£648m) being supplemented by other existing investors.
The company said a “significant part” of the funds will be diverted towards continued growth in OYO’s fastest-growing market the United States, and in strengthening the company’s position in the vacation rentals business in Europe.
Earlier this year, RA Hospitality Holdings received CCI approval to invest $2bn (£1.62bn) in OYO. In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help Argawal increase his stake.
OYO has recently expanded its presence to 80+ countries around the world fueled by growth in China with a of over 590,000 rooms, followed by fast-paced growth in Indonesia with presence in 100+ cities and over 27,000 rooms, the UK with presence in 30 destinations and over 3,500 rooms, and more recently in the U.S., with a presence in 60 cities, 21 states and over 7500 rooms.
Agarwal 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.”
He added: “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.”