OYO Rooms, one of India’s leading network of branded budget hotels has raised INR150 crore from Lightspeed, Sequoia and Greenoaks Capital. This will help the two year old company to realise its ambition of becoming the largest technology-enabled network of hotels in the world.
With a beginning from one hotel in Gurgaon in 2013, OYO Rooms has now grown to more than 200 hotels in 10 cities booking 50,000 room nights every month. OYO Rooms is poised to aggressively expand its network to 1000 hotels in 25 cities by this year end.
Announcing the fresh round of fund raise, Ritesh Agarwal, CEO, OYO Rooms said, “When I was 18, I travelled across the country and stayed at more than 100 budget hotels. This journey led me to realise how difficult it was to get a pleasant and reliable consumer experience in these hotels. So, in a quest to make affordable stays ‘real’, I started OYO Rooms. Our vision is to offer the ‘OYO Rooms experience’ to every business, leisure and pilgrim traveller across 100 cities through a network of 10,000 hotels. We welcome Greenoaks as a partner and are excited to work with them. Our current investors- Lightspeed, Sequoia and DSG have been great partners in helping us build and scale the company.”
Abhinav Sinha, COO, OYO Rooms said, “Our customers have options, so we understand it is important to deliver an exceptional experience consistently to win their trust. This requires strong execution capabilities at all levels. OYO has laid a robust foundation with efficient operating processes, real time integration of inventory with hotels, and effective customer feedback collection and processing.”
Neil Mehta, managing director and founder, Greenoaks Capital said, “We believe OYO Rooms has an incredible opportunity to solve major pain points for hotel owners and customers by leveraging technology to deliver a consistently great experience in the budget hotel space. We are especially excited about the team at OYO and could not be more proud to partner with them on this exciting journey.”
Bejul Somaia, managing director, Lightspeed India said, “The economy stays segment is a large, unorganised and fragmented market and we believe that OYO brings a new, scalable and customer-friendly approach to addressing this opportunity. Ritesh and Abhinav have forged a strong partnership to build OYO. We look forward to helping them in fulfilling their mission of building the world’s largest technology-enabled hotel network.”