Budget-hotels marketplace OYO Rooms is in advanced stages of securing nearly $100 million (Rs 635 crore) from Japan's SoftBank Corp and other investors primarily for expansion, according to three people aware of the matter.
The startup, founded three years ago by college dropout Ritesh Agarwal, now 21, is expected to be valued at about $400 million (Rs 2,500 crore) after the investment, one of them said.
OYO Rooms' pre-investment valuation is estimated at $200-300 million, ac ..
"We have no comments at this point of time," Agarwal said in an email. SoftBank executive Jonathan Bullock did not reply to an email from ET.
India's budget-stay startups are drawing a lot of attention from investors, evident in the slew of deals stitched in the past 2-3 months. More investments are being struck. Zo Rooms is in talks to raise $10-15 million from investors including Tiger Global Management, and Fabhotels is looking to raise around $5 million from Accel Partners and othe ..
For SoftBank the OYO Rooms deal will be its fourth investment in India in the past 12 months, during which it has poured nearly $1 billion in etailer Snapdeal, cab aggregator Ola and online realty classifieds Housing.
Budget stay startups such as OYO Rooms aggregate and organise hotels in various cities to ensure that across the brand guests have a quality and standardised experience, and typically charge around Rs 1,000 a night. Hotels converting to the OYO brand get demand from the s ..
Treebo Hotels, founded by former Myntra executives, raisedRs 38 crore from SAIF Partners and Matrix Partners India in June, and Wudstay Hotels raised Rs 19 crore from Mangrove Capital Partners and Vikas Saxena, CEO of messaging app Nimbuzz, earlier in July. Other startups in the space include Royal OrchidBSE -2.22 % cofounder Keshav Baljee's Zip Rooms and GoStays, promoted by Naspers-owned Ibibo Group.
"Oyo has a head start and fundraising advantage but it is not a winner-take-all ma ..
OYO Rooms was initially focused on online short-stay accommodation listing like the popular US-based room-sharing service AirBnB.
It then caught the attention of VentureNursery, which angelfunded the startup after a threemonth programme. Agarwal was then chosen for the Thiel Fellowship and given a $100,000 grant by early Facebook investor and Pay-Pal cofounder Peter Thiel. The fellowship is given to entrepreneurs below 20 years of age who skip college for two years to start their own ..
(Source: Economic Times)