Few reports are cropping up that Japan’s telecoms and internet giant SoftBank Corp has held talks with Oyo Rooms, a Delhi-based branded budget hotel marketplace, for leading a massive $100 million (Rs 630 crore apprx.) financing round in the company.
If all goes well with Softbank- Oyo talks, then this would be the third institutional fund-raise for Oyo Rooms which has emerged as the largest player in the fast-growing online hotel booking space.
Softbank, an existing investor in Indian startups such as e-commerce firm Snapdeal, taxi-hailing service Ola and realty portal Housing, is looking to pick up a 25-30% stake in Oyo Rooms founded by Ritesh Agarwal, 21, a college dropout. Oya was founded with name of Oravel Stays three years ago by him.
Softbank is said to have put in a term sheet, a non-binding agreement between the company and the investor, but the final terms of the funding are yet to closed, people familiar with the matter said.
As per sources, Tiger Global, one of the most aggressive and prolific backers of India’s consumer internet story, had also discussed a potential investment in Oyo but may have pulled out of the talks.
[Top Image Credits – SoDelhi.com]