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Indian hotel chain OYO to raise US$1b from Softbank, others
HOTEL chain OYO Hotels said on Tuesday it would raise US$1 billion from existing investors, including Japan's Softbank Group, to grow its business in India and China, and expand into new international markets.
In the latest funding round, which could value OYO at about US$5 billion, it has already raised US$800 million from investors led by Softbank's Vision Fund, the world's biggest private tech investor, and Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital.
The investors have committed to invest an additional US$200 million, OYO said.
Markets such as South-east Asia and the Middle East, which have a large volume of unbranded hotels, offer the budget accommodation provider the potential to expand, OYO's founder and chief executive officer Ritesh Jain said.
"While we will double down on our investment in home markets, we will open new geographies in the future," he told Reuters. "We have a very large opportunity worldwide."
OYO plans to invest US$600 million of the new funds in China, where the hotel aggregator has expanded into 171 cities and 87,000 rooms since its launch in the country about 10 months ago. The company will use the remaining funds to expand in India and enter new markets.
India's fastest-growing hotel chain will continue to diversify its portfolio of hotels and target the middle-income and low-income travellers, Mr Jain said. REUTERS