OYO Said to be in Talks with Grab to Raise Funds – CORPORATE ETHOS

OYO Said to be in Talks with Grab to Raise Funds

By: | December 5, 2018

Dec 5: OYO Homes, a major player in the hospitality segment in the country, is in discussions with Singapore-based  ride-sharing company Grab, to raise an amount of $100 million (Rs 697.7 crore). The companies are expected to complete the deal in the coming days. In March 2018, Grab backed by Softbank acquired Uber’s Southeast Asian business.

According to reports, OYO in September had announced that will raise a fund of $1 billion from its existing investors run by the Japanese conglomerate SoftBank. With the move, the company aims to elevate itself as a unicorn company. A unicorn company is startups which are worth $1 billion and more.

Reports added that OYO had received an investment of $800 million from SoftBank’s Vision Fund and investment firms such as Lightspeed Venture Partners, Sequoia Capital and Greenoaks Capital with commitments for a further of $200 million.

The Oravel Stays Pvt Ltd company which was launched in 2013 is headquartered at Gurugram. OYO began operating with aggregating hotel rooms under its name and also blocked a few rooms in partner hotels.

It had expanded operations abroad as one of its investors was China Lodging Group Ltd, a Chinese hotel. It began its foreign operations in 2016 in Malaysia. As per the announcements made by the company in October 2017, it aims to establish itself in Indonesia and had plans to invest $100 million in the Southeast Asian nation. It also began operations in China in June. Other markets where OYO operates are Nepal, the United Kingdom, and the United Arab Emirates. In India, the company owns 125,000 rooms.

In November, OYO had appointed Aditya Ghosh as the chief executive to head its operations in India and South Asia. Aditya Ghosh is the former president of the airline company IndiGo.

Over the past six months, OYO had acquired three startups which are Weddingz.in, an online platform for wedding venues and vendors; AblePlus Solutions Pvt Ltd, Internet of Things (IoT) Technology Company and Novascotia Boutique Homes, a service apartment firm.