Oyo Hotels & Homes has announced that it is raising $1.5 billion as part of its Series F funding round.

As a part of this round, RA Hospitality Holdings will infuse approximately $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.

A significant part of the funds will be diverted towards continued growth in OYO’s fastest-growing market the United States, and in strengthening the company’s position in the vacation rentals business in Europe.

Earlier this year, RA Hospitality Holdings’ received CCI approval to invest $2 billion in Oyo.

In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia are selling part of their shareholding in Oyo to help the founder increase his stake while remaining invested and committed to the company’s long-term mission.

Prior to this, Oyo had raised over $1 billion in its last financing round, announced on September last year, led by SoftBank through SoftBank Vision Fund.

Commenting on the development, Ritesh Agarwal, Oyo founder, said: “The continued support of our investors like Softbank Vision Fund, Lightspeed and Sequoia Capital is a testament to the love, trust and relentless support of our asset owners and customers.”

He added: “I am also happy to share that on a year-on-year basis, we have seen that not only are we operating profitably at the building level but at the same time our EBITDA has also improved by 50 per cent.”