Oyo Rooms is aiming to raise between $750 million and $1 billion funds in the next few months, reported Business Standard. The hospitality firm will use fresh funds to infuse in its parent company Oravel Stays.
The new round of funding, which will push Oyo’s valuation to $13.5-15 billion, is likely to be led by the SoftBank Group, said the report. The Ritesh Agarwal-led startup is likely to spend the funds on massive diversification and for the management and operation of its five-star and luxury properties across the globe.
The new round of funding comes not long after the startup’s founder in an unprecedented move proposed to buy back shares worth $1.5 billion from early investors. The share buyback has been approved by the Competition Commission of India.
Earlier, Oyo Rooms began talks with various financial institutions reportedly to raise $200 million to expand its operations in the United States. India’s largest operator of hotels, which bought Hooters Casino Hotel in Las Vegas last month, has identified the premium hotels segment as its area of focus in the global arena.
This push towards premium category outside India is important as it points towards a departure from the company’s strategy of operating budget hotels in the country.