The biggest lodging chain is now adding $1.5 billion to the business which was raised from the Founder, SoftBank Group Corp, Rithesh Agarwal and other Venture Capitalists. The reason for pumping extra value is the expansion plan upheld by the company to reach the US and Europe market.

Ritesh Agarwal will support the company’s with $700 million, OYO said in a statement on 7th Oct.

He's also buying $1.3 billion worth of existing shares from early investors Lightspeed Venture Partners and Sequoia Capital, with support from banks and financial partners.

“We truly believe that we will be able to build a truly global brand out of India, while ensuring that the business is run efficiently and with a clear path to profitability,” said Agarwal.

Rithesh the young entrepreneur ventured OYO in 2013, the company is now turned as the second most valuable startup with $10 billion value. It spans 1.2 million rooms in over 80 countries, including 590,000 rooms in China.

Recently entering the US market it has 7,500 rooms in 60 cities. The founder's stake in the company has increased, but the size is undisclosed. The company also declined to comment on its latest valuation.

"Oyo’s valuation signals its scale and growth," said Ujjwal Chaudhry, the Bangalore-based director at RedSeer Consulting. "The quality of the experience is not top-notch but it’s improving."