Oyo Rooms is planning to raise funding of $100 million in another round, in which Japan’s telecoms and internet corporation Softbank is expected to be the leading investor.
If the deal is closed then this will be a third institutional fund raise for Oyo Rooms in the online hotel booking space.
As reported by the TOI, Softbank is planning to acquire 25-30% of stakes in the startup founded by Ritesh Agarwal, 21, a college dropout. The company was founded by the name of Oravel Stays three years ago by him. Tiger Global was also in talks with the startup for a potential investment in Oyo Rooms, with no further developments.
Presently, Oyo is functional across 15 cities with 4000 budget hotel rooms on its platform based on the Uber and Airbnb model. The startup raised a Series A funding of $25 million in March 2015 from Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital Management. By the end of this year, OYO plans to add 1,000 hotels across the country on its platform.
Oyo Rooms is competing with another similar venture Stayzilla which raised a Series B funding of $20 million from Nexus Capital & existing investors Matrix Partners.
Softbank has been observed to be investing in other Indian startups such as Ola, Housing and Snapdeal.