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OYO Rooms faces difficulties in closing new round of funding

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Due to a slowdown in fundraising environment and competition in Indian online hotel aggregation space, the budget hotel room aggregator, has lowered its sights. Last November, it had set to raise $400 million but now it is looking for at least a quarter of the expected amount.

OYO Rooms faces difficulties in closing new round of funding
OYO Rooms is backed by Japan's SoftBank

Due to ongoing circumstances, it might get difficult for the Gurgaon-based company to close the acquisition deal of its smaller rival . The deal has been in the process from past four months. There has been a delay in the deal due to the disagreement between the shareholders at OYO and difficulties in closing a new round of funding.

OYO Rooms is backed by Japan’s , which has stepped up and is expected to invest $50-80 million in the company.

Over the last few weeks, OYO Rooms has tried to reach to several strategic investors in online travel and etailing space to come in as a lead investor in its round of funding. However, the startup has not succeeded in finding any takers.