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SoftBank in talks to invest $100 mn in Oyo Rooms

Japan’s SoftBank Corp has reportedly held talks with Oyo Rooms, a branded budget hotel marketplace, for leading a massive $100 million financing round in the company, reports the Times of India, citing sources. 

According to the report, Softbank, which is an existing investor in Snapdeal, Ola Cabs and realty portal Housing, is reportedly looking to pick up a 25-30% stake in the startup Oyo Rooms. 

Japan’s SoftBank Corp has reportedly held talks with Oyo Rooms, a branded budget hotel marketplace, for leading a massive $100 million financing round in the company, reports the Times of India, citing sources. 

According to the report, Softbank, which is an existing investor in Snapdeal, Ola Cabs and realty portal Housing, is reportedly looking to pick up a 25-30% stake in the startup Oyo Rooms. 

Softbank is said to have put in a term sheet, a non-binding agreement between the company and the investor, but the final terms of the funding are yet to closed, reports the Times of India, citing sources.  

Tiger Global has also discussed a potential investment in the Gurgaon-based company, founded by Ritesh Agarwal three years ago. According to the report, they may have pulled out of the talks. 

Oyo is present across 15 cities with 4000 budget hotel rooms on its platform. The company claims that starting at moderate charges of Rs 999 per night, hotel owners that partner with Oyo see a significant spike in occupancy levels. 

In March 2015, Oyo had raised $25 million from Greenoaks Capital. Existing investors Sequoia Capital and Lightspeed Venture Partners also participating valuing it at $100 million. 

The company is looking to expand its network to 1000 hotels in 25 cities by this year end. Agarwal has said earlier in a report that his vision is to offer the Oyo Rooms experience to every business, leisure and pilgrim travelers across 100 cities through a network of 10,000 hotels. 

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