Through InCred Wealth and Investment, Oyo has raised Rs 416.85 crore, or roughly $50 million. The funding for the unicorn hotel company based in Gurugram comes after a lapse of nearly three years.
A regulatory filing obtained from the Registrar of Companies (RoC) reveals that the board of Oyo has approved a special resolution to issue 14,37,41,379 Series G CCPS at an issue price of Rs 29 each in order to raise Rs 416.85 crore, or $50 million.
In accordance with the filings, Oyo intends to use these funds for growth, acquisitions, and global expansion.
The company’s post-allotment valuation, according to media estimates, is approximately Rs 19,756 crore, or $2.38 billion. Crucially, the new investor will demand 2.11% of the business after allotment.
At a $9.6 billion valuation, the Lightspeed-backed company received $5 million in investment from US tech giant Microsoft in August 2021. The most recent capital has had its valuation reduced by over 70% from its peak.
Oyo’s founder, Ritesh Aggarwal, recently announced that the company achieved its first-ever annual net profit of Rs 100 crore in FY24. The business withheld its last fiscal year’s revenue. From Rs 4,871 crore in FY22 to Rs 5,464 crore in FY23, the company’s operating revenue increased by 14.3%. The company reduced its losses to Rs 1,287 crore during that time, a 33.7% decrease.
Oyo recently withdrew its draft papers (DRHP) due to unfavorable conditions for the second time. After the current round ends, when Oyo is probably going to raise more money, the company might resubmit the IPO documents.
In 2022, Oyo’s valuation was initially lowered to $3.4 billion by its principal investor, SoftBank. The markdown was then rejected by the company, though.
