Hotel and home chain OYO is raising another massive $1 billion round of funding from a new investor to lead the round along with existing investors including SoftBank, Grab, DiDi Chuxing, Sequoia, Airbnb and others, and would value OYO — world’s sixth largest hotel chain — at a whopping $10 billion, sources with direct knowledge of the development told Financial Express Online.
“OYO is in talks with a new investor to raise $1 billion in the new round and will value the company at $10 billion,” one source said. However, the new investor’s name couldn’t be ascertained.
An OYO spokesperson ruled out the fundraising calling it speculation even as OYO “has a very healthy balance sheet and we are not in talks with any investors.”
SoftBank had already led a $1-billion round in OYO in September last year following which the company has raised $100 million each from Singapore-based ride-hailing company Grab in December last year and Chinese cab booking giant DiDi Chuxing along with SoftBank in February this year. Airbnb had also invested $75 million in OYO in April this year, as per deals tracker Crunchbase.
The new valuation would put OYO at par with Paytm’s valuation of $10 billion — the most valued Indian startup and ahead of Ola’s $6.2 billion and Byju’s over $5 billion. OYO is currently valued at $5 billion.
The new round is coming amid OYO’s rapid global expansion and its aim to become the world’s biggest hotel chain by 2023. It currently manages over 20,000 hotels across 24 countries and is also China s second largest hotel having around 10,000 hotels on its platform and 450,000 rooms.
The company has also been acquiring companies to build scale into new and existing categories including coworking (for which it acquired Innov8 earlier this year) and vacation rental (wherein it bought Amsterdam-based @Leisure Group for $415 million).