KUALA LUMPUR (Sept 26): Malaysia-based OYO Hotels, South Asia’s largest hotel chain, has raised RM3.31 billion (US$800 million) in the latest financing round led by SoftBank Investment Advisers (SBIA) through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital.

OYO Hotels also confirmed that it received a commitment of an additional RM827.14 million (US$200 million), bringing the total to RM4.14 billion (US$1 billion) in this round.

In a statement today, OYO Hotels said it currently operates more than 120 properties across Malaysia, including Kuala Lumpur, Penang, Langkawi, Johor and Melaka, with room prices starting as low as RM49 a night.

OYO Hotels founder and chief executive officer Ritesh Agarwal said with the additional funding, it plans to rapidly scale up its business in the five countries namely India, China, Malaysia, Nepal and more recently in the UK, while continuing to invest further in technology and talent.

"We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global," he added.

The company will direct a significant part of the funds from this round of financing – RM2.48 billion (US$600 million) – into strengthening its position in China, which is still in the early stages of growth, while the rest will go into maintaining its leadership position in India and expansion into new markets.

JP Morgan acted as the exclusive financial advisor to OYO Hotel on this fundraising.