The company’s latest round of fundraising will see Oyo’s chief executive and founder Ritesh Agarwal inject $700 million into the business through RA Hospitality Holdings, while the other $800 million coming from existing investors in Oyo, who include Japanese conglomerate SoftBank.

Oyo said a “significant part” of this extra $1.5 billion will be “diverted towards continued growth in Oyo’s fastest-growing market, the US, and in strengthening the company’s position in the vacation rentals business in Europe”.

The company, which was started by Agarwal six years ago when he was 19, now manages 1.2 million rooms in hotels and homes across the world – making Oyo the second largest global hotel brand with a presence in more than 800 cities in 80 countries.

Around half of its global inventory is in China where it manages 590,000 rooms, while Oyo currently manages 7,500 rooms across 60 cities in the US, and 3,500 rooms in the UK.

“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.

“Our immediate goal however is to make forward-looking investments so we can achieve our mission, while delivering on our fiduciary responsibility to our investors by building a sustainable business.”

Oyo’s investors also include Airbnb, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India and Hero Enterprise.