Gurgaon-headquartered hospitality company Oyo has raised $100 million from Star Virtue Investment, an entity controlled by the Chinese cab-hailing giant Didi Chuxing, according to documents filed with the Registrar of Companies (ROC) and sourced from data intelligence firm PaperVC.
The funding took place on January 22 and is meant to be a part of the $1 billion round that Oyo raised in September. In the same month, IndiaWeb2.com reported that Oyo was in talks to raise money from Didi Chuxing at a possible valuation of $2 billion.
Notably, Softbank is a common investor in both Didi Chuxing as well as Oyo.
Oyo last raised $800 million in a financing round led by SoftBank Investment Advisers (SBIA) with participation from Lightspeed Venture Partners, Sequoia and Greenoaks Capital in September.
Even as the company is expanding overseas, it plans to aggressively focus on two core markets, India and China.
Recently, it was reported that Oyo is in talks to acquire India business of Keys Hotels, a brand of full-service hotels in India that operates under its parent chain of Berggruen Hotels.
In December it was rumored that OYO had held talks to acquire Treebo Hotels, a rival firm also into affordable accommodation segment and headquartered in Bangalore. Matrix Partners and SAIF Partners are common investors in both OYO and Treebo.
Oyo does business on a franchisee model, under which it offers customers rooms from exclusive properties that have either been leased by Oyo, or are run on a revenue-share basis.
It runs multiple properties across categories including economy, mid-scale, and upper mid-scale properties. It recently entered into luxury resort range under the brand name Palette.
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