Branded budget hotel rooms aggregator OYO Rooms said it has raised $100 million in a funding led by SoftBank and its existing investors Greenoaks Capital, Sequoia Capital and Lightspeed India.
The raised funds will be used to implement new customer experience initiatives, build technology products, and extend its network.
The venture will also expand its network to 50,000 rooms and 100 cities in India by the end of the year. Currently, the company is present in more than 70 cities with more than 12,000 available rooms.
The 2 year old Gurgaon based venture has grown to become India’s largest branded network of hotels. For customers looking for a place to stay, OYO offers a three-tap booking app, convenient payment channels, high quality reliable experience and services, and 24X7 customer support. In India’s highly fragmented hotel industry, OYO empowers unbranded hotels to increase revenues by providing access to technology, operational best practices and a national ecosystem of vendors and sales channels.
Ritesh Agarwal, Founder and CEO of OYO Rooms said, “We are at the forefront of solving a problem of lack of predictability of experience across hotels in the country. Our vision is to provide a standardized experience – the OYO experience, to anyone, anywhere looking for a place to stay when not at home. We are excited to have global investors like SoftBank partner with us in this vision. Their experience in building innovative companies globally will bolster our efforts to grow into one of the world’s most trusted hotel businesses.”
In March 2015, the company raised $20 million in a funding round led by Greenoaks Capital and other existing investors.
This is the fourth investment of Japan’s Softbank in Indian in the last 12 momths. Previously SoftBank has made around $1 billion investment companies like Snapdeal, Ola and Housing.com.