Hospitality giant Oyo Rooms has raised $100 million from China-based ride-hailing giant Didi Chuxing. The investment has further surged the total valuation of Oyo to $5 billion. The investment has been infused by Star Virtue, a Didi controlled company. Prior to this Oyo received a similar investment from Singapore headquartered transportation company, Grab.
As per industry sources, the latest investment is targeted towards Oyo’s expansion in China via its sister company, Oyo Jiudian. A significant portion of the investment will also be poured in gearing up the company’s India operations.
The business relationship between the two entities dates back to the year 2017 when Oyo announced its entry in China partnering with Didi Chuxing. The collaborative tagline at that time read,’ Ride comfortably with Didi, Stay comfortably with Oyo.’
Sources close to the deal say that Oyo and Didi will partner each other as they both penetrate new markets and grow globally. Oyo at present has its operations in the UK, China and Southeast Asia.
As per the data released by Oyo last month, Oyo jiudian is present across 280 cities in China, with more than 5,000 hotels and 260,000 rooms in its kitty. The Gurgaon based company also reported a three-fold hike in its India revenue during the financial year 2018. The consolidated revenue of the company stood at INR 416 crore as against 120 crores for the same period, a year ago.
