Why SoftBank’s Vision Fund Is Investing Big in Indian Startups
SoftBank to invest $250 million in OYO rooms
Indian startup OYO, which pioneered the concept of budget hotel networks, has closed $250 million in new funding led by SoftBank’s Vision Fund. SoftBank’s Vision Fund has invested in OYO, which will be a part of the SoftBank Vision Fund, the world’s largest technology fund. India has been an attractive destination for investments with Amazon (AMZN) and Apple (AAPL) both spending big in the country.
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OYO rooms has a country-wide presence
OYO has been a very popular app since it was founded in 2013. The app standardizes the quality of the country’s differentiated affordable hotels. The app helps simplify bookings and guarantees a certain standard of service. OYO now has around 8,500 hotels and about 70,000 rooms in over 230 cities on its app. SoftBank invested ~$100 million in OYO back in 2015.
The company wants to double its revenue over the next year. The company recorded booked revenue of ~$250 million in fiscal 2017, which ended in March. It plans global expansion with the company already having started its operations in Malaysia and Nepal earlier this year.
Last month, the Vision Fund announced a whopping $2.5 billion investment in Flipkart, an e-commerce company that rivals Amazon (AMZN) in India (EPI). Softbank has also invested in other Indian start-ups like Snapdeal and Uber’s ride-hailing rival in the region, Ola.