OYO aims to raise up to $1 bn for diversification
OYO Rooms is planning to raise funds between $750 million and $1 billion in the next few months. The fresh funds will be used by the hospitality firm to infuse in its parent company Oravel Stays.
The new funding round will push Oyo’s valuation to $13.5-15 billion. It is expected to be led by the SoftBank Group.
The company is likely to spend the funds on massive diversification and for the management and operation of its five-star and luxury properties across the globe.
Earlier, the Ritesh Agarwal-led firm started talks with various financial institutions reportedly to raise $200 million for expanding its operations in the United States. OYO has identified the premium hotels segment as its area of focus in the global arena.
Last month, India's largest operator of hotels acquired Hooters Casino Hotel in Las Vegas. The push towards premium category outside India is important as it points towards a departure from the company’s strategy of operating budget hotels in the country.
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