Oyo Rooms’ valuation to touch $850 million, this will be the size of its funding
Apr 24, 2017, 11:55 IST
SoftBank is going to lead the $250 million funding round of Oyo Rooms, which will take the online hotel booking platform’s valuation to $850 million.
ET reported the size of Oyo Rooms’ latest funding round is half of the $500 million proposed by SoftBank.
After the fresh round of funding, SoftBank will have 42% ownership.
"Seeing what has played out at Snapdeal, many early investors are wary of SoftBank taking large ownerships in their portfolio companies. But Oyo hasn't been able to shore up capital from external investors, which is why they have opted for half of what was committed by SoftBank," a person privy to the transaction told ET on the condition of anonymity.
The investment in Oyo will come through the newly launched $100-billion SoftBank Vision Fund, which is eyeing opportunities in technology ventures globally.
A SoftBank spokesperson told ET, "We do not comment on portfolio companies and especially around fund-raising efforts. We are very happy with Oyo's progress in general and commend the team."
Oyo may still be trying to get an external investor to come into this round, a source told ET. The hotel aggregation segment in India has gone through consolidation post a slug of capital coming into companies like Oyo and the Tiger Global-backed Zo Rooms, which shut down last year.
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ET reported the size of Oyo Rooms’ latest funding round is half of the $500 million proposed by SoftBank.
After the fresh round of funding, SoftBank will have 42% ownership.
"Seeing what has played out at Snapdeal, many early investors are wary of SoftBank taking large ownerships in their portfolio companies. But Oyo hasn't been able to shore up capital from external investors, which is why they have opted for half of what was committed by SoftBank," a person privy to the transaction told ET on the condition of anonymity.
The investment in Oyo will come through the newly launched $100-billion SoftBank Vision Fund, which is eyeing opportunities in technology ventures globally.
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Oyo may still be trying to get an external investor to come into this round, a source told ET. The hotel aggregation segment in India has gone through consolidation post a slug of capital coming into companies like Oyo and the Tiger Global-backed Zo Rooms, which shut down last year.