OYO, a hospitality unicorn based in Gurugram, has raised US$806.75 million funding from investors, SoftBank, and RA Hospitality Holdings. This investment is the first tranche from US$1.5 billion Series F round that was announced late last year.
Reports from filings of the ministry of corporate affairs that were accessed by Inc42 suggests that OYO has raised over US$506.75 million from subsidiary SVF Holdings based in Cayman islands. US$300 million, on the other hand, was invested by the hospitality giant, RA Hospitality Holdings.
As part of this transaction, OYO has issued 5,699 and 9,626 shares to RA Hospitality Holdings and SoftBank, respectively. The cost of a single share is US$52,643.22, along with a face value of US$1.35 (equivalent to 100 INR).
OYO also announced about the US$1.5 billion deal back in October 2019. The company has stated that in the Series F round, approximately US$700 million will be infused by RA Holdings as primary capital in the company. Other existing investors will supplement the remaining US$800 million.
This funding comes just after the company made headlines across the world for its reconstructing plans that led to massive layoffs across the 80 countries it is operational in.
Over February and March 2020, OYO has laid off almost ten thousand employees across the world. Agarwal is hopeful about the future, though. It said that the company is prioritizing highly on improving relations with stronger corporate governance and hotels.
Agarwal was founded in 2013 as a hotel chain, and OYO has grown into a model of the franchise. Its verticals vary from casino hotels, holiday homes, corporate stays, budget hotels, and more.