OYO Rooms raises Rs. 150 crore from Lightspeed Venture Partners

OYO Rooms, a network of branded budget hotels, has raised Rs. 150 crore from Lightspeed, Sequoia and Greenoaks Capital. This will help the two year old company to realize its ambition of becoming the largest technology-enabled network of hotels in the world.

With a humble beginning from one hotel in Gurgaon in 2013, OYO Rooms has now grown to more than 200 hotels in 10 cities booking 50,000 room nights every month. OYO Rooms is well poised to aggressively expand its network to 1000 hotels in 25 cities by this year end.

OYO Rooms leverages internet and mobile technology to offer a delightful experience to the consumer right from booking to check-out. OYO’s hotel-facing technology enables hotels to increase their occupancy and become a part of a brand that is recognized and loved nationwide.

Announcing the fresh round of fund raise, Ritesh Agarwal, Thiel fellow, CEO of OYO Rooms said, “When I was 18, I travelled across the country and stayed at more than 100 budget hotels. This journey led me to realize how difficult it was to get a pleasant and reliable consumer experience in these hotels. So, in a quest to make affordable stays ‘real’, I started OYO Rooms. Our vision is to offer the ‘OYO Rooms experience’ to every business, leisure and pilgrim traveler across 100 cities through a network of 10,000 hotels. We welcome Greenoaks as a partner and are very excited to work with them. Our current investors- Lightspeed, Sequoia and DSG have been great partners in helping us build and scale the company.”

Abhinav Sinha, COO of OYO Rooms said, “Our customers have options, so we understand it is important to deliver an exceptional experience consistently to win their trust. This requires strong execution capabilities at all levels. OYO has laid a robust foundation with efficient operating processes, real time integration of inventory with hotels, and effective customer feedback collection and processing.”

Neil Mehta, Managing Director and Founder of Greenoaks Capital said, “We believe OYO Rooms has an incredible opportunity to solve major pain points for hotel owners and customers by leveraging technology to deliver a consistently great experience in the budget hotel space. We are especially excited about the team at OYO and could not be more proud to partner with them on this exciting journey.”


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