Budget hotel brand OYO is in talks with China’s internet giant Tencent to raise $300-500 million funding at a valuation of over $2 billion. If the deal comes through, OYO would be the fifth company to join the unicorn club this year after Paytm Mall ($1.9B), Byju’s ($1B), Swiggy ($1.3B) and PolicyBazaar who recently got the valuation of $1 billion after raising more than $200 million from investors led by SoftBank Group's Vision Fund.
Previously, the Gurugram-based company was valued at $850 million when it last raised $250 million in 2017, mostly from existing investor SoftBank through its Vision Fund.
The Japanese telecom and internet major SoftBank is the single-largest stakeholder in the company with a stake of 42%. The company is also backed by investors like Lightspeed Venture Partners, Sequoia Capital, Hero Moto Corp, and Greenoaks Capital among others. It operates in three categories - the aggregation business brand OYO Rooms which contributes 90% of its revenues, along with Townhouse and Flagship, where the company leases properties and services them for a better quality experience.