Oyo commits Rs 1,400-crore investment for India and Nepal markets

Oyo

Moneycontrol News 

SoftBank-backed Oyo on March 12 said it will invest $200 million (Rs 1,400 crore) in India and Nepal markets in the next 10 months, soon after closing $1 billion fund raise.

"The money will go in capex, technology and leadership," Aditya Ghosh, CEO India and South Asia of Oyo said in an interaction with reporters.

Oyo is currently available across 259 cities with 8,700 buildings and 173,000 rooms in India.

Oyo wants to further widen its presence across India while focusing on aggressive capacity building.

The company also announced the addition of Collection O hotels to its existing portfolio of the budget- to mid-segment hotel chain brands.

The company claims to be getting over 93% of its sales are from repeat or word-of-mouth customers.

Oyo last raised $100 million from China's Didi Chuxing in January which competed its $1 billion fund raise that was announced last year.

The company currently aims to focus on investing and franchise building to take advantage of the global $3.6 trillion accommodation market.

Globally, Oyo is now present in 10 countries and over 500 cities.

"With a strong balance sheet, today we can go to more places than ever, introduce new categories, invest in our assets, while maintaining our high-quality standards, without raising any further capital," said Ritesh Agarwal, Founder and Group CEO.