Oyo Hotels & Homes is raising $1.5 billion from founder Ritesh Agarwal and investors led by SoftBank, valuing it at $10 billion, reaching a big milestone.
Of the $1.5 billion, Agarwal’s RA Hospitality Holdings will spend approximately $700 million and the rest will be supplemented by existing investors. A significant part of the Series-F funding will be diverted in boosting the US footprint, and in strengthening the position in the vacation rentals business in Europe.
Agarwal’s investment will be part of the $2-billion plan, announced earlier, to treble his ownership stake. Lightspeed Venture Partners and Sequoia are selling part of their shareholding in Oyo to help Agarwal increase his stake. Oyo claims to have a strong balance sheet, with over $2 billion.
Oyo had raised over $1 billion in September 2018. This fundraising saw participation from SoftBank, Lightspeed Venture Partners, Sequoia, and Greenoaks Capital, and new strategic partners like Airbnb.