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Online aggregator of branded hotels OYO has received Rs 413.1 crore in a fresh round of funding from its existing investor Japan-based SoftBank Group.
The board of Oravel Stays Pvt Ltd, which owns OYO, had approved on July 22 allotment of 10,460 series C1 compulsorily convertible cumulative preference shares to SoftBank Group Capital amounting to Rs 413.05 crore, according to the document filed by the company with the Registrar of Companies.
This was pursuant to the share subscription agreement executed earlier between Oravel Stays Pvt Ltd, founder Ritesh Agarwal and SoftBank.
The capital raised is expected to be used by OYO to expand its new initiative ‘OYO Flagship’, its premium offering with a different model.
OYO had raised around $100 million (about Rs 630 crore) in 2015 from a group of investors led by SoftBank Group. The funding round also saw participation of existing investors Greenoaks Capital, Sequoia Capital and Lightspeed India.
At that point, the Gurgaon-based company had said it would use the funding to implement new customer experience initiatives and build technology products.
OYO has over 6,500 hotels on its network in 213 cities across the country.
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