Chinese internet giant Tencent Holdings is in talks to lead a fresh round of funding worth USD 300-500 million in budget hotel chain OYO Rooms, according to a report by the Times of India.

The funding will likely value the company at USD 2 billion, almost double the valuation of USD 850 million from SoftBank's Vision Fund, the report said.

Gurugram-based OYO has also held talks with other Chinese companies and a few financial investors for the funding, the report added.

"The company is engaged with Tencent, and a term sheet is likely There’s a bunch of other investors also in talks, but those are preliminary at the moment. The fundraise is largely to grow the China business," a source told the Times of India.

If the funding goes through, it will be the first round of financing not led by SoftBank.

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