India-based budget hotel booking platform Oyo Rooms has raised $250m in a funding round led by internet and telecom conglomerate Softbank’s $93bn Vision Fund, the Economic Times reported today.
Service project management and contract manufacturing company Hero Enterprise, Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital also contributed to the round, which is said to value Oyo at $850m to $900m.
Oyo was reported to be seeking between $300m and $500m at a $1.2bn valuation in February 2017. That deal would reportedly have given SoftBank a majority stake of just over 50%.
Founded in 2012, Oyo operates an online platform for users to book branded rooms in partner, budget hotels that guarantee a certain standard of accommodation. The company currently manages a network of 8,500 hotels with 70,000 rooms across 230 cities.
The money will primarily go toward international expansion efforts, with a focus on Southeast Asia, adding to the company’s existing overseas presence in Malaysia and Nepal.
SoftBank previously supplied $62m in August 2016, after leading a $100m series B round a year earlier. The series B also included Lightspeed, Sequoia and Greenoaks at a $400m valuation.
Lightspeed, Sequoia, Greenoaks, DSG Consumer Partners and Venture Nursery had previously earlier injected more than $25.5m in funding in the company.
Justin Wilson, the Oyo board representative for SoftBank, said: “Oyo has solidified its position in India as the leading accommodation brand for consumer affordability and high quality standards.
“We are excited to continue to support Oyo as they further expand their position in India and bring the Oyo promise of affordability and elevated hospitality to other markets around the world.”