Oyo, the rapidly growing Indian hospitality business, founded by Ritesh Agarwal, has accumulated a total valuation of $10 billion after Agarwal acquired $2 billion in shares from venture capital firms Lightspeed Venture Partners and Sequoia Capital.
Oyo was launched in 2013 by Agarwal when he was 19 years old. With the immense growth in global hotel chain businesses, Oyo expanded dramatically and is now considered as one of the biggest startups in the hotel industry in India.
According to The Wall Street Journal, Agarwal chose to expand his stake from 10% to 30% through RA Hospitality Holdings, a Cayman Islands company following the expanding global hotel industry.
SoftBank also participated in this round and raised its ownership percentage to a total of 50 percent of the company.
To date, Oyo has raised a massive amount of $1.6 billion in equity funding, achieving a $5 billion valuation in its last round of funding. Other companies like Airbnb, Didi Chuxing and Grab Holdings are also shareholders in the company.
Oyo has evolved tremendously since it was first launched in 2013. A small scale startup that started in India has now reached and expanded on a global level with high success rates. The company now has 23,000 hotels in 800 cities of over 80 countries its portfolio.
The firm recently disclosed its plans of investing $300M in the U.S. market, where the organization presently runs about 50 Oyo hotels spread across 35 cities in 10 states.
The Gurgugram-headquartered company launched Oyo Workspaces earlier this week. The new segment is the result of Oyo’s acquisition of a co-working startup named Innov8 that has more than 200 employees. Launched in 2015, Innov8 was founded by a doctor turned entrepreneur, Ritesh Malik.
According to the report by TechCrunch’s Manish Singh, the startup was acquired for about $30 million by Oyo. The company is planning to expand its capacity to 10,000 coworking seats, making it one of the largest co-working hubs.
Oyo is currently working on three distinct co-working brands set to be priced differently. Out of the three, Innov8 is supposed to be placed in the premium category.