Due to a slowdown in fundraising environment and competition in Indian online hotel aggregation space, the budget hotel room aggregator, OYO Rooms 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.
Due to ongoing circumstances, it might get difficult for the Gurgaon-based company to close the acquisition deal of its smaller rival ZO Rooms. 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 SoftBank, 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.