OYO raises $1 bn from investors led by Softbank; firm now valued at $5 bn

Forget about the crash in the Indian equity market. Indian hospitality start-up OYO has raised a massive $1 billion (Rs 72.63 billion) from four existing investors led by SoftBank. The latest fundraising is estimated to value OYO, which operates in the budget hospitality space, at around $5 billion (Rs 363 billion), a five-fold increase since September last year, when the last funding round took place. OYO was not even a unicorn (a start-up valued at $1 billion and above) before this funding round.

This e-series funding round makes OYO the most valued hospitality company in the country, ahead of Tata Group’s Indian Hotels Company (which owns the Taj brand of hotels) and EIH (which owns the Oberoi brand of hotels). BSE-listed Indian Hotels and EIH have a market cap of Rs 147 billion and Rs 87 billion, respectively.

Besides SoftBank, which owns a majority stake in OYO, the three other existing investors-Lightspeed Venture Partners, Sequoia and Greenoaks Capital- also participated in the latest funding round. OYO said it has already raised $800 million from these four investors and received commitment for an additional $200 million, bringing the total to $1 billion in this round. JP Morgan is acting as the exclusive financial advisor to OYO on this fundraising.