The Indian Hotel Chain, OYO Hotels & Homes, said it will raise $1.5 billion, as part of its Series F funding round. As a part of the round, RA Hospitality Holdings’ will infuse nearly $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.
Earlier this year, RA Hospitality Holdings’ received approval from the Competition Commission of India to invest $2 billion in OYO. In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help the founder increase his stake.
Ritesh Agrawal, founder and CEO (Global), OYO Hotels & Homes, said in a statement, “I am also happy to share that on a Y-O-Y basis, we have seen that not only are we operating profitably at the building level but at the same time our EBITDA has also improved by 50% (on a Y-o-Y basis).”