OYO said that it has become the world’s third largest hotel chain in terms of the number of rooms as of June 2019 within six years of launching the company. The company has expanded to more than 800 cities having nearly 23,000 hotels on its platforms and 850,000 rooms.
OYO currently has around $1.5 billion available to further fuel its growth even as it has scaled rapidly on the back of its success in China with a presence in 337 cities and over 500,000 rooms, the company said in a statement. OYO has a presence in 80 cities with over 20,000 rooms and 720 hotels presence in Indonesia and other regions in Asia.
“OYO has surpassed other hotel brands including IHG, Accor, Wyndham etc. It will spend $300 million out of the $1.5 billion towards the US business,” a source aware of the development told Financial Express Online.
This comes amid reports of Ritesh Agarwal being in talks with the company’s investors Sequoia Capital and Lightspeed Venture Partners to buy back shares and increase his ownership of the startup he founded. “This signals on how confident Agarwal is about the business and the nearing timelines for IPO that is expected after three years. The investors are more likely to have a partial exit,” the source added.
Financial Express Online had reported that SoftBank might push Sequoia and Lightspeed for a full exit to enhance its stake in OYO provided it has the consent of Ritesh Agarwal, Founder and Group CEO OYO Hotels & Homes after it was restricted to increase its stake beyond 49.99 percent as per the amended articles of association during 2017 funding.
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