Japanese internet and telecom firm SoftBank has led a new round of funding in budget hotels brand OYO Rooms.
An existing shareholder in the company, SoftBank invested.Rs 413 crore
through a proposed rights issue last month, according to documents filed
with the Registrar of Companies.
The new round of funding will peg the post-money valuation of the Gurgaon-based startup at Rs 3,129 crore or about $460 million. The capital infusion is expected to be used by OYO Rooms to expand its new initiative called 'Flagship', where it controls 100% of the inventory of the hotel under this category to provide a more premium experience to customers. The other investors in this round included Lightspeed Venture Partners, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners. SoftBank declined to comment on the development while OYO Rooms' spokesperson could not be reached.
Besides the new funding, OYO Rooms has bought back shares worth Rs 60 crore from its early angel investors led by VentureNursery. The Mumbai-based accelerator had invested about Rs 25 lakh in the company in 2012, and has made about 250 times returns from its early bet, one of the angels involved in the deal told on condition of anonymity.
Had reported on April 13 that Venture-Nursery, a Mumbai-based accelerator which was the first investor in OYO Rooms, was looking for an exit and that differences had emerged due to it. OYO Rooms, founded by 21-year-old Ritesh Agarwal, had raised $100 million in the previous round of funding in August 2015 led by SoftBank. The company was then valued at $400 million post-money while the new round of the company has been raised at $400 million pre-money. The financing round reflects sobering sentiment around thge high valuation of Indian internet companies.
Had first reported on March 8 that OYO Rooms was struggling to get a new investor to lead its new round of funding and that it was likely to be led by SoftBank.
The new round of funding will peg the post-money valuation of the Gurgaon-based startup at Rs 3,129 crore or about $460 million. The capital infusion is expected to be used by OYO Rooms to expand its new initiative called 'Flagship', where it controls 100% of the inventory of the hotel under this category to provide a more premium experience to customers. The other investors in this round included Lightspeed Venture Partners, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners. SoftBank declined to comment on the development while OYO Rooms' spokesperson could not be reached.
Besides the new funding, OYO Rooms has bought back shares worth Rs 60 crore from its early angel investors led by VentureNursery. The Mumbai-based accelerator had invested about Rs 25 lakh in the company in 2012, and has made about 250 times returns from its early bet, one of the angels involved in the deal told on condition of anonymity.
Had reported on April 13 that Venture-Nursery, a Mumbai-based accelerator which was the first investor in OYO Rooms, was looking for an exit and that differences had emerged due to it. OYO Rooms, founded by 21-year-old Ritesh Agarwal, had raised $100 million in the previous round of funding in August 2015 led by SoftBank. The company was then valued at $400 million post-money while the new round of the company has been raised at $400 million pre-money. The financing round reflects sobering sentiment around thge high valuation of Indian internet companies.
Had first reported on March 8 that OYO Rooms was struggling to get a new investor to lead its new round of funding and that it was likely to be led by SoftBank.
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