Oyo- India’s leading budget hotel chain, has now expanded its operations to yet another country — Nepal. This is the second country outside of India where Oyo has expanded its business. Last year, in January, Oyo had entered Malaysia, marking its first international destination.
Commenting on the company’s expansion to Nepal, Ritesh Agarwal, Founder and CEO – OYO, said:
Building the category (of small and budget hotels) grounds-up, we have employed technology and operational acumen to deliver delight to our customers and unparalleled benefits to partners. Our network has witnessed robust growth to become the largest in India. After our successful overseas foray in Malaysia, we are now thrilled to offer OYO’s hassle-free and standardised stay experience to travellers visiting Nepal.
Considering the data acquired from Department of Immigration, it makes a good choice for Oyo to expand its base to Nepal. As per the data, more than 174,800 tourists who visited Nepal in 2016, highest number of them were reported from India.
The timing of the expansion is pretty interesting considering that there are reports suggesting that the company has secured $250 million funding from SoftBank, at a valuation of $850 million. However, nothing has been made official yet.
Several reports indicates that SoftBank has offered to invest $500 million, but due to opposition from existing investors, they have settled for $250 million. The $250 million investment will make Japan-based SoftBank group a shareholder of over 42 percent.
At this stage, it is not yet known if the company’s existing investors are taking part in the new funding round. While not officially announced, this expansion pretty much confirms the $250 million funding round.
Founded in 2013, OYO currently claims to have 7,000 hotels and 70,000 rooms in more than 200 Indian cities. Till now, the company has raised $375.65 million in 5 funding rounds from 7 investors, according to CrunchBase.