Budget-hotels marketplace OYO Rooms is in advanced stages of securing nearly $100 million from Japan’s SoftBank Corp and other investors primarily for expansion. The company has not commented on the matter yet. The news has only been broken by some sources familiar with the enterprise.
Ritesh Agarwal, now 21, founded the startup 3 years ago, and after this investment, the startup is expected to be valued at about $400 million.
As per sources, OYO Rooms’ pre-investment valuation is estimated at $200-300 million.
As per ET, one of the sources maintained, “The round is closed and now final formalities are being ironed out… The round is being led by SoftBank with participation of a few existing investors like Sequoia Capital.”
Declining to respond on the matter, Agarwal said in an email, “We have no comments at this point of time.”
OYO Rooms deal will be Softbank’s fourth investment in India in the past 12 months. During this course, it invested nearly $1 billion in Snapdeal, Ola and Housing.