Oyo stake sold: China’s largest ride-hailing company Didi Chuxing puts in $100 million

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Published: February 14, 2019 1:40:55 PM

Oyo raised $100 million from Star Virtue Investments in exchange for 2,884 Series E compulsorily convertible cumulative preference shares allotted, said regulatory filings.

The current round continued to value Oyo at around billion from its previous round.

OYO Hotels and Homes has raised $100 million from Star Virtue Investments in exchange for 2,884 Series E compulsorily convertible cumulative preference shares allotted, said company’s regulatory filings sourced by business signals platform Paper.vc.

Star Virtue Investments which is reportedly a part of China’s largest ride-hailing company Didi Chuxing backed Oyo based on “the resolution passed by circulation by the board of directors of Oravel Stays (Oyo’s parent company) on January 22, 2019,” the filing said.

The funding is raised at a price per subscription share of Rs 24,68,558.

The latest comes after the $1 billion funding raised by Oyo is September last year from investors including SoftBank and Sequoia Capital, Greenoaks Capital and Lightspeed Venture Partners.

The current round continued to value Oyo at around $5 billion from its previous round.

The $5 billion valuation, however, skyrocketed for near six-year old company by around 5 times from approximately $900 million when it raised $250 million in September 2017 from SoftBank and other investors.

Launched in June 2018, Oyo’s China business is already bigger than its home operations. The company currently claims to be among China’ top five chains of leased and franchised hotels and homes with presence in over 280 cities having 5,000 hotels on-board. In India, over is present in more than 230 cities, the company said on its website.

Oyo has raised $1.7 billion across 11 funding rounds so far as per deals tracker Crunchbase.

The company had recently announced a 3.5x growth in its operating revenue for India business to Rs 416 crore in FY18 from Rs 120 crore in the preceding fiscal year.

OYO attributed the growth to “notable increase” in exclusive room supply, increase in stayed room nights by 2x and consistent margin expansion.

Its revenue estimates for the current fiscal year is more than Rs 1,400 crore.

Earlier, OYO Hotels and Homes has said that its hotel sales globally went up by 4.3x from $0.4 billion in 2017 to $1.8 billion in 2018, PTI reported.

“Globally, we have reached over 4,58,000 fully controlled leased and franchised keys (rooms) with a realised value run rate of $1.8 billion,” said its CFO Abhishek Gupta.

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