Oyo Rooms planning to raise Series B funding for $100 million, the company is in talks with Softbank. The company is online accommodation provider in budget hotel category. Oyo Rooms claims to be India’s largest branded network of hotels spread across 32 cities with 700+ hotels offering standardized stay experiences.
The company is a technology driven chain provides standardized budget hotels. The company is constantly on growth curve and spreading into many cities. Oyo rooms website offers a combination of web payment mechanism, discovery, bookings, online feedback system and virtual tours.
The company is based in Gurgaon and has operation center in Bengaluru, Oyo Rooms was found in 2013 by Ritesh Agarwal and Abhinav Sinha. Ritesh Agarwal is CEO of Oyo Rooms. He is a fellow of The Thiel Foundation and has been awarded as World’s Youngest CEO at 17, TOP 50 Entrepreneurs at NEN First Dot and Finalist of Global student Entrepreneurship Awards – India. He has published Encyclopedia of Indian Engineering College.
Abhinav Sinha is Chief Operating Officer of Oyo Rooms. He has graduated in Bachelor of Engineering in Chemical Engineering from Indian Institute of Technology, Kharagpur in 2003. Later he went on to do his Masters of Business Administration in General Management from Harvard Business School in 2009.
Abhinav started his career as Assistant Manager in ITC Limited in 2003. He worked with ITC for 4 years and moved to OmniGuide as an Associate. He was responsible for Clinical Affairs and Business Development in the company. After a brief stint in the company, he went for his higher studies in Harvard. In 2009 he joined as intern in Johnson and Johnson. After completion of internship he joined the Boston Consulting Group as Principal in October 2009. He worked the company close to 5 years and joined Ritesh Agarwal in his venture.
Oyo Rooms received several rounds of funding in shorter span of its operations. They received an undisclosed amount by VentureNursery in Jan 2013. Later in May, 2014, the company secured a seed capital of $650K from DSG Consumer Partners and Lightspeed Ventures. In March 2015, Oyo Rooms raised $25 million from Sequoia Capital, Lightspeed Venture Partners and Greenoaks Capital Management as Series ‘A’ funding.
The company is in talks with major private equity provider Softbank for Series B Funding. According to the reports Softbank may provide $100 million finance to Oyo Rooms. However the final terms of the deal is yet to be inked. As we are all aware Softbank has funded Housing.com through which they may pick up a stake. Apart from Housing.com, Softbank has invested in Snapdeal and Ola.
Oyo Rooms have to compete with Zo Rooms and Casa2Inns, these companies have been funded by Greenoaks Capital. On the other hand Greenoaks have invested in Flipkart. Companies like Stayzilla.com are offering low budget hotel accommodation may pose competition to Oyo Rooms in this segment.