Founded in 2013, Oyo has been on an expansion spree, widening its footprint to 80 countries.
Oyo Hotels & Homes has raised $807 million from existing backer SoftBank and founder Ritesh Agarwal-led RA Hospitality Holdings, according to the company’s RoC filings sourced from business signals platform paper.vc. The investment is part of Oyo’s $1.5 billion series F financial round announced in October last year.
The latest investment will take Oyo’s total fund count to over $2 billion. The bulk of the fresh funds will be used to expand its business in the US, the company had said earlier.
Last month, the Gurgaon-based firm said it narrowed its net losses in India from 24% of revenue in FY18 to 14% of revenue ($83 million) in FY19. India contributed $604 million in revenues in FY19, registering an almost three-fold rise on a yearly basis. Consolidated losses increased to $335 million for the year ended March 2019 from $52 million in FY18 as international expansion entailed heavy costs.
As internet companies scramble to check costs amid growing losses, Oyo let go of a sizeable chunk of employees as part of what it calls “business restructuring”. Rohit Kapoor, CEO, India and South Asia, had earlier told FE that the firm let go of about 15%-20% of its 12,000 strong India workforce. Post the WeWork debacle, global investors are treading cautiously and have directed firms to chase profits rather than valuation.
In October 2019, Oyo said it will raise $1.5 billion in fresh funding with participation from RA Holdings and other investors. Oyo’s $1.1 billion series E funding round which came to a close last year saw investment by SoftBank, China’s Didi Chuxing, Singapore’s Grab and US-based home sharing firm Airbnb.
Founded in 2013, Oyo has been on an expansion spree, widening its footprint to 80 countries. The firm claims to have hosted over 180 million guests from more than 120 nationalities between January and December 2019.
SoftBank is routing the investment through Cayman-based SVF India Holdings, the document showed.