Last Updated : Jul 24, 2018 09:35 PM IST | Source: Moneycontrol.com

In a fresh round of funding, Tencent could value OYO at $2 billion: Report

If the funding goes through, it will be the first round of financing not led by SoftBank.

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Chinese internet giant Tencent Holdings is in talks to lead a fresh round of funding worth $300-500 million in budget hotel chain OYO Rooms, according to a report by the Times of India.

The funding will likely value the company at $2 billion, almost double the valuation of $850 million from SoftBank's Vision Fund, the report said.

Gurugram-based OYO has also held talks with other Chinese companies and a few financial investors for the funding, the report added.

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"The company is engaged with Tencent, and a term sheet is likely There’s a bunch of other investors also in talks, but those are preliminary at the moment. The fundraise is largely to grow the China business," a source told the Times of India.

"Getting a backer like Tencent will help OYO grow aggressively in China," another source told the paper.

If the funding goes through, it will be the first round of financing not led by SoftBank.

Moneycontrol could not independently verify the news.

The company recorded a gross booking value of $500-600 million, the report said.
Last month, OYO announced its expansion into 26 Chinese cities, making it the third overseas market for the company after Malaysia and Nepal.


The company is also eyeing expansion into Indonesia, the UK and European markets, Mint reported last month.
First Published on Jul 24, 2018 09:35 pm