OYO Hotels & Homes, the world’s fastest-growing chain of hotels, homes and living spaces, announced its plan to raise $1.5 billion, as part of its Series F funding round.
RA Hospitality Holdings’ will infuse approximately $700 million as primary capital in the company, with the balance of $800 million being supplemented by other existing investors. A significant part of the funds will be diverted towards continued growth in OYO’s fastest-growing market the United States, and in strengthening the company’s position in the vacation rentals business in Europe.RA Hospitality Holdings earlier received CCI approval to invest $2 billion in OYO. In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia are selling part of their shareholding in OYO to help the founder increase his stake while remaining invested and committed to the company’s long-term mission.
Prior to this, OYO had raised over $1 billion in its last financing round, announced in September 2018, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.
OYO Hotels & Homes has emerged as the world’s second-largest hotel, and fastest-growing chain of hotels, homes, living and workspaces, leaving behind several traditional and long-standing hospitality brands.
“The continued support of our investors like Softbank Vision Fund, Lightspeed, Sequoia Capital is a testament to the love, trust and relentless support of our asset owners and customers, hard work of all OYOpreneurs, and our commitment to making #LivingTheGoodLife a reality for over 3.2 billion middle-income people around the world. With the CCI approval now in place, the company will get a capital infusion of approximately $1.5 billion to support this mission, supported by me and other shareholders,” said OYO Hotels & Homes founder and CEO Ritesh Agarwal.