Hotellier Oyo is in talks with two consortiums- a combination of SoftBank Vision Fund and We-Work and a set of strategic investors in the travel industry to raise around $1 billion in a deal, The Economic Times reported.
The move can push the company into the Unicorn club as the valuation can cross $4 billion with the deal, said the ET report.
The Gurgaon-based startup has been aggressively expanding in China. The valuation of more than $4 billion can add the company to the league of most valued Indian internet companies after Flipkart ($20 billion) and Paytm ($10 billion).
However, the company is yet to finalise the investor consortium and the capital it will raise, which is likely to be between $500 million and $1 billion. Depending on the capital amount, the company can be valued between $4.5 billion and $5 billion, sources were quoted as saying in the report.
“Oyo has got multiple term-sheets and is expected to finalise the deal by the end of this month,” said the sources, adding that Sequoia Capital and Lightspeed will also be participating 'in a meaningful way'.