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Budget hotels platform OYO Rooms raises Rs 125 Cr from Greenoaks Capital, others

Gurgaon-based
startup OYO Rooms, a platform for budget hotels, has raised Rs 125 crore from Greenoaks
Capital and existing investors as it targets bringing more budget hotels in

Gurgaon-based
startup OYO Rooms, a platform for budget hotels, has raised Rs 125 crore from Greenoaks
Capital and existing investors as it targets bringing more budget hotels in
India under its platform, reports the
Economic Times.

Lightspeed and
Sequoia also participated in the latest round. According to the report, a
company spokesperson said that the latest fund-raising was done at a valuation
of close to Rs. 623 crore.

The three year
old startup has expanded aggressively in the past six months, growing from 30
hotels to 200 and from one city to 10. By the end of this year, OYO plans to
have 1,000 hotels across the country on its platform.

“We believe
OYO Rooms has an incredible opportunity to solve major pain points for hotel
owners and customers by building a consistently great experience in the budget
hotel space,” Neil Mehta, M.D. of Greenoaks Capital, told the Economic
Times.

Founder Ritesh
Agarwal launched the startup as the Indian version of home-sharing website
Airbnb. But in 2013, he moved away from this model to build a branded budget
hotels startup.

Earlier known as
Oravel Stays, the startup initially got funding from Mumbai-based accelerator
VentureNursery before raising a seed round from Lightspeed Venture Partners and
DSG Consumer Partners last year, at a Rs. 14 crore valuation. Later, the firm
raised Rs. 30 crore from Sequoia Capital in October at Rs 110 crore pre-money
valuation.

According to Agarwal,
OYO registered 45,000 rooms nights in February, translating to an average of
about 1,600 room nights a day. While rival Stayzilla, which aggregates small
hotels and guest houses, has seen its number of room nights per day increase by
6-8 times annually.

“In
December 2014, we did 4,000 room nights a day and we are targeting to increase
this to 20,000 by December 2015,” Stayzilla founder & chief executive
Yogendra Vasupal was quoted in the report as saying. Vasupal estimated the
startup, which last month raised Rs 120 crore from Nexus Venture Partners and
Matrix Partners, will more than double its listing from 22,000 now to about
50,000 by the end of 2015. 

 

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