Didi Chuxing, China’s leading ride-hailing brand, has reportedly made a huge investment of $100 Million in OYO converting it into a $5 Billion brand name. With this latest finding, the $1 Billion financing round came to a remarkable end.
OYO provides an innovative online platform (website and smartphone application) where the users can search for hotels and affordable accommodations in various locations.
An OYO Spokesperson said, “We are happy to confirm that we have officially closed our $1 Bn financing round, of which $900 Mn was closed back in Qtr ended 2018 and we have also received the balance $100 Mn as disclosed in the RoC filings. We do not have any further comments.”
The new investment was done by Start Virtue Investment, an investment concern of Didi. A few months ago, an investment of $100 Million was done by Grab, a transportation brand operating in Singapore.
Before that, in September 2018, OYO successfully attracted an overwhelming investment of $800 million from Vision Fund, a Softbank corporation, along with the leading Indian investment firms Sequoia Capital, Lightspeed India Partners, Greenoaks Capital.
OYO entered the map of China back in November 2017 after playing the partnership card with Didi Chuxing. Both the brands designed a tagline “Ride comfortably with Didi, Stay comfortably with OYO” and announced the entry of the Gurgaon-based startup.
Within a year, OYO reported its presence in 280 cities with a listing of over 5,000 hotels allocating 260,000 rooms for accommodations.
As per the reports, OYO has used nearly $600 Million to invade and establish in the new Chinese market. The fresh fund from Didi Chuxing will be used for the fortification of its operations in India and China.