Budget hotel aggregator Oyo has managed to get Rs 413 crore in funds from Japan’s SoftBank Group Corp, reported Livemint.
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Documents filed by Oyo with the Registrar of Companies confirm the investment, the report said.
In addition to this financing, the company is now reportedly looking to raise $29 million (around Rs 194 crore) in a mixture of equity & debt from existing investors apart from picking up $5 million in debt financing from InnoVen Capital, as per a Times of India report.
Oyo did not respond to an email seeking comment.
The company was looking to raise over $100 Mn for this round.
Oyo and SoftBank couldn’t be immediately contacted.
According to a report, the capital raising deal is in two tranches, the first $61 million (nearly Rs 405.8 crore) of which has reached the company.
Between October and December 2014, SoftBank invested about $1 billion in these three companies and committed another $10 billion to India in the next 10 years. The company had earlier raised $25 million in Series A funding from Sequoia Capital, Greenoaks Capital and Lightspeed Venture Partners in March previous year. Oyo Flagship leases properties and services them for better quality experience. Oyo Flagship is a move to fix quality issues which emerged as a big concern for the hotel aggregator after it scaled up its inventory indiscriminately to quash other competitors a year ago. Treebo Hotels, which racked up Rs 112 crore from Bertelsmann India Investments and its existing investors, also picks up full properties but uses the franchise model instead of leasing or owning properties.
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Oyo claims to operate in more than 170 Indian cities. The company subsequently invested in Snapdeal, Ola and Oyo in 2015.
