India-based short-term accommodation provider Oyo Rooms has entered talks with investors including internet and telecommunications firm SoftBank to raise between $500m and $800m, LiveMint reported today.
The company is in discussions with SoftBank, a shareholder in the company since 2015, and two undisclosed new investors, according to four people aware of the development.
Oyo operates a short-term accommodation booking platform, partnering local budget hotel operators. The Oyo-branded rooms are standardised to meet a minimum level of amenities and comfort, and are bookable on the company’s app.
The company’s network spans more than 8,500 hotels spread across more than 230 Indian cities, and the additional capital would be used to expand its hotels and its international presence.
However, Oyo told LiveMint in a statement: “We deny any rumours of raising fresh investment at this point in time. Considering we are well-capitalised having $250m in investments and with core focus of India and new launches in Malaysia and Nepal, we have a lot to work for our customers and assets.
“We are happy to be the global pioneer of the full-stack hospitality model and wish to take it to new markets, but are currently focused on deepening our market share in India.”
Oyo has raised almost $450m in funding since it was founded in 2012, its last round consisting of a $10m investment by hotel operator China Lodging Group in September 2017.
SoftBank’s Vision Fund had led a $250m round earlier the same month that included diversified trading firm Hero Enterprise, Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital, and which reportedly valued the company at between $850m and $900m.
Lightspeed, Sequoia, Greenoaks, DSG Consumer Partners and Venture Nursery had provided $25.5m of funding for Oyo before the first three returned for a $100m series B round led by SoftBank at a $400m valuation in 2015. SoftBank invested a further $62m the following year.