In a statement OYO said that a significant part of the funds will be diverted towards it growth plans in the US market, and in strengthening the company's position in the vacation rentals business in Europe.
"Earlier this year, RA Hospitality Holdings' received CCI (Competition Commission of India) approval to invest $2 billion in OYO. In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help the founder increase his stake while remaining invested and committed to the company's long-term mission," it said.
OYO had raised over $1 billion in its last financing round, announced in September 2018, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.
Commenting on the development, Ritesh Agarwal, founder and CEO (Global), OYO Hotels & Homes said: "The continued support of our investors like Softbank Vision Fund, Lightspeed, Sequoia Capital is a testament to the love, trust and relentless support of our asset owners and customers, hard work of all OYOpreneurs. With the CCI approval now in place, the company will get a capital infusion of approximately $1.5 billion to support this mission, supported by me and other shareholders."
"I am also happy to share that on a Y-o-Y (year on year) basis, we have seen that not only are we operating profitably at the building level but at the same time our EBITDA has also improved by 50% (on a Y-o-Y basis). The losses as a percentage of NRV have also been on a steady and significant declining curve. The growth across verticals in India and globally has been phenomenal and we truly believe that we will be able to build a truly global brand out of India, while ensuring that the business is run efficiently and with a clear path to profitability," he added.
OYO is present in over 80 countries. As per the company, the company witnessed "3.8x" YoY revenue growth in August 2019.
( With inputs from IANS )