Oyo, the Indian budget-hotel chain startup, is finalizing a fresh fundraise of around $100 million to $125 million from family offices, investors, including corporate strategy advisor Anand Jain, and others. The fundraise values Oyo at about $2.5 billion, a significant decrease from its peak valuation of $10 billion in 2019 and $9 billion in 2021.
Oyo has raised over $3 billion to date. Its largest investor, SoftBank, recently reduced the company's valuation to $2.7 billion from $3.4 billion.
Oyo is in advanced negotiations with Malaysian sovereign wealth fund Khazanah Nasional for investment, with Ritesh Agarwal, the founder of Oyo, expected to raise the remainder of the round from India-based investors.
Incred Wealth is assisting Oyo in pitching the fundraise to high net-worth individuals, and Oyo may consider approving an initial fundraise of around Rs 500 crore.
Oyo saw a net profit of $12 million in the financial year ending March, and investors believe in potential high returns if Oyo goes public at a higher valuation.
Founder Ritesh Agarwal took a $2 billion debt to increase his stake in Oyo.
Oyo will hold an extraordinary general meeting for its shareholders to vote on the fundraise.
Sources: TechCrunch, Times of India, The Tech Portal, Ommcom News, StartupNews, Economic Times.
This article was written in collaboration with Generative AI news company Alchemiq.
