Gurugram-based startup, Oyo Hotels, has raised $1 billion in its latest funding round, the company said in a statement.
The company, India's largest and fastest-growing hotel chain, was launched in 2013, raised $800 million in its latest funding round led by SoftBank Investment Advisers (SBIA) along with the participation from existing investors - Lightspeed Venture Partners, Sequoia and Greenoaks Capital.
Watch Ritesh Agarwal speak to CNBC-TV18 here.
The addition of $200 million will take the total fundraising to $1 billion and it had received a commitment from the investors for the amount, the company said.
JP Morgan is acting as the exclusive financial advisor to Oyo on this fundraising, the company said in its statement.
The latest fundraising round has given the valuation of $5 billion to Oyo hotels, sources told CNBC-TV18.
The fundraising, the company said, is aimed for Oyo to 'strengthen its market position in its home markets - India and China - and support its international expansion plans'.
Out of $1 billion of the funds raises, $600 million will be deployed into China market, said sources, adding that the company is looking to massively expand in the country in the next 10 months.
"With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent. We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global," Ritesh Agarwal, the founder and the chief executive of the company, said in the statement.
The company also said it will look to expand its market further in India.
On how the company is already performing on its expansion, Agarwal said, "We have already started expanding our presence to newer segments, with Oyo Home, Oyo Townhouse and more recently Palette Resorts by Oyo. We will continue to explore newer businesses while remaining focused on both organic and inorganic growth."
Oyo Hotels is currently present in 350 cities across five countries - India, China, Malaysia, Nepal and UK.
First Published: IST