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SoftBank-backed budget hotel aggregator OYO to invest US$100M in Indonesia

SoftBank-backed budget hotel aggregator OYO to invest US$100M in Indonesia

OYO will start with over 30 exclusive hotels and more than 1,000 rooms in three cities — Jakarta, Surabaya and Palembang

India-based budget hotel hotel aggregator OYO has announced its expansion into Indonesia, soon after its entry into China.

As per a press statement, the firm will invest over US$100 million in the country as part of expansion.

OYO, which is backed by the likes of SoftBank and Sequoia India, will start with over 30 exclusive hotels and more than 1,000 rooms in three cities — Jakarta, Surabaya and Palembang.

“We intend to invest over US$100 million in this high growth market and plan to expand to the top 35 cities in Indonesia, including Yogyakarta, Bandung, Bali, over the next 15 months,” said OYO Founder and CEO Ritesh Agarwal.

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“This expansion is in line with our quest to support the country’s hospitality ecosystem and creating infrastructure for asset owners to grow and run successful businesses, all of this while ensuring high standards of quality,” he said.

In September this year, OYO announced it would raise US$1 billion from SoftBank Vision Fund and other investors.

In 2016, OYO launched in Malaysia.

OYO was founded in 2014 by Agarwal, a college drop-out and geek, who plunged into entrepreneurship at the age of 17. He previously founded Oravel Stays, a short-stay accommodation portal, which was funded by VentureNursery, DSG Consumer Partners and Lightspeed. In mid-2014, Oravel was shut down as it failed to scale as expected, and Agarwal started OYO.

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