ASK Financial Holdings, InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and other investors contributed Rs 1,457 crore (about $175 million) to the hospitality giant Oyo in a Series G round.
At an EGM on August 8, 99.99% of shareholders approved the additional equity issuance, according to a PTI report.
ASK Financial Holdings contributed Rs 14 crore ($1.65 million) and J&A Partners contributed Rs 120 crore ($14 million), while Patient Capital invested Rs 830 crore ($100 million). InCred has also been used by seasoned investor Ashish Kacholia.
To put it briefly, Ritesh Agarwal, the CEO and founder of Oyo, is the head of Patient Capital, a Singapore-based company.
It is noteworthy that Rs 416 crore ($50 million) that InCred raised last month is included in the funding round. The company was valued at $2.38 billion, and the aforementioned report states that even with the closing of the new tranche, the valuation has not changed.
Oyo stated in earlier filings that it plans to use the money raised for more business plans, acquisitions, and worldwide expansion.
Oyo’s valuation has dropped dramatically by 70% as a result, from $9.6 billion in August 2021—when it raised $5 million from Microsoft, a major US tech company—to this amount.
In May, Agarwal, the founder of Oyo, announced that the company had achieved its first-ever annual net profit of Rs 100 crore in FY24. 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. The company still hasn’t submitted its FY24 audited financial statements.
The company, based in Gurugram, has put off going public for a while. It retracted its draft papers (DRHP) for a second time in May due to unfavorable circumstances. After completing a significant funding round that is set to close following the most recent fundraise, the company also stated that it will refile the IPO papers.
