Oyo gets a kick by Chinese ride-hailing giant Didi Chuxing: Aim to expand globally
Didi invests $100 Million at Oyo; it is its second investment in India.
Oyo completes its $1 Billion funding round led by existing backer SoftBank, Vision Fund.
The latest fund has valued Oyo $5 Billion.
Oyo plans to expand its business in China using $100 Million funds raised from
Oyo completes its $1 Billion funding round led by existing backer SoftBank, Vision Fund which had infused $800 Million into the firm. It has recently raised funds of $100 Million from Chinese ride-hailing giant Didi Chuxing. The latest fund has valued Oyo $5 Billion.
According to people aware of the deal, Singapore based transportation major Didi’s investment in Oyo will assist Gurgaon based startup in expanding its business in China and also assist in the operation of the Indian domain. Two companies are in good relation to each other since 2017 when Oyo has used ride-hailing platform to announce its entry into the world’s largest economy, China market. At that time tagline used to spread all over China, “Ride comfortably with Didi, stay comfortably with Oyo.” Oyo and Didi are doing strategic partnerships to assist each other in expanding their business globally. Recently Oyo is providing its services in the UK, China, and Southeast Asia and in few parts of the US.
According to data released by Oyo previous month, it operates in 280 cities across China with more than 5,000 hotels and 2,60,000 rooms in its basket. It operates a combination of leased and franchised properties there.
SoftBank holds 42% stack in the company will see a similar shareholding in Oyo’s Chinese subsidiary. Other investors including Light Speed Venture Partners and Sequoia Capital are also backing Oyo China business. Oyo shareholding in China will be a mirror image of it’s as in India.
