24 year old Ritesh Agarwal's OYO Rooms has just announced that it has raised a capital of $1 billion (nearly Rs 7,280 crores) in a new funding round led by SoftBank, with participation from Sequoia, Lightspeed and Greenoaks Capital.

The investment round placed OYO at a pre-money valuation of $4 billion. $800 million has already been raised, and the round has offered a further commitment of $200 million in follow-up funding. This takes the valuation of OYO to $5 billion, making it the second most valuable startup in India after PayTM.

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File photo: Ritesh Agarwal, Founder & CEO, OYO

According to the Barclays-Hurun India rich list, Ritesh Agarwal is the youngest wealthy Indian today. He dropped out of college at the age of seventeen to pursue his entrepreneurial aspirations, and received the famous $100K 'dropout' fellowship from Peter Thiel in 2013.

In 2015, he raised $100 million for OYO, from Sequoia Capital and SoftBank. Today, OYO is South Asia’s largest hotel chain, with an inventory of 211,000 rooms spread over 349 cities. With the recent funding round, Ritesh seems to have his eyes set on Britain's budget hotel market. OYO plans on rolling out its first two UK hotels in Edgware and Ilford (London) next month.

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"In the last 12 months, we have increased our international footprint to five countries - India, China, Malaysia and Nepal, and more recently in the UK. With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent."

- Ritesh Agarwal (Founder & CEO, OYO)