Hospitality giant Oyo has successfully raised Rs 1,457 crore (approximately $175 million) in a Series G funding round, attracting investment from a diverse group of investors, including InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings.
According to a PTI report, the additional equity issuance was overwhelmingly approved by 99.99% of shareholders during an Extraordinary General Meeting (EGM) held on August 8.
Notable serial investor Ashish Kacholia also contributed to the round through InCred.
It’s important to note that this funding round includes Rs 416 crore ($50 million) raised from InCred last month. Oyo’s valuation remains steady at $2.38 billion following the new tranche, despite the company’s valuation experiencing a significant drop of 70% from $9.6 billion in August 2021, when it secured $5 million from US tech giant Microsoft.
Oyo has disclosed that the funds will be utilized for growth, global expansion, including acquisitions, and enhancing its business plans.
In May, Oyo’s founder Ritesh Aggarwal announced that the company posted its first-ever annual net profit of Rs 100 crore in FY24. The company’s revenue from operations in FY23 increased by 14.3% to Rs 5,464 crore, up from Rs 4,871 crore in FY22, while losses were reduced by 33.7% to Rs 1,287 crore. However, the company has yet to file its audited financials for FY24.
Oyo has also decided to delay its plans for going public, having withdrawn its draft papers (DRHP) for the second time in May due to unfavorable market conditions. The company has indicated that it will refile its IPO papers after concluding a large funding round, which is expected to close following this recent capital raise.
