Budget hotel aggregator Oyo has managed to get Rs 413 crore in funds from Japan's SoftBank Group Corp, reported Livemint. The Oravel Stays-owned company has filed documents with the Registrar of Companies that reveal the deal was made on July 22. The Gurgaon-based company is also set to receive another Rs 193 crore from investors led by the Japanese telecommunications company in equity and debt, according to The Times of India.
The companies have yet to issue statements regarding the development. Oyo was looking to raise Rs 100 crore and buy back Rs 60 crore worth of shares from its existing investors. None of its investors – Greenoaks Capital, Sequoia Capital and Lightspeed Venture Partners – took part in the fresh bid for funds. This is the first time that the Japanese company has invested in an Indian start-up since its senior executive Nikesh Arora announced in June that he is quitting the company.
According to Oyo, the company has 68,300 rooms across 170 Indian cities. It has partnered with 5,855 properties in India and is looking to triple the count by the end of 2016. It kicked off its first foreign venture with operations in Malaysia in January. The company is owned by Ritesh Agarwal (pictured above), who started the venture in 2013.
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