The low-cost hotel company OYO has raised roughly $175 million from a group of investors in its Series G fundraising round.
The report states that at an EGM on August 8, 99.99% of shareholders authorised the new stock offering.
ASK Financial Holdings, J&A Partners, Patient Capital, InCred Wealth, and the family office of Mankind Pharma promoters are among the investors in the round. Ashish Kacholia, a seasoned investor, also makes investments with InCred.
As per prior reports, the cash will be utilised for business plan enhancement, global expansion, including acquisitions, and growth.
Shares of compulsory convertible cumulative preference, valued at Rs 29, are being used for the most recent investment. 35,86,98,276 shares in total are being issued.
This corresponds to an investment of around Rs 76 crore by InCred, which comprises the Rs 416 crore ($50 million) it made in the company the previous month. ASK is investing Rs. 14 crore, J&A Partners is spending Rs. 120 crore, and Patient Capital is investing Rs. 830 crore.
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OYO’s most recent investment has reportedly led to a $2.38 billion valuation. The startup financed by SoftBank had an initial valuation of $10 billion. The US software giant Microsoft provided $5 million of the last funding round in August 2021.
OYO withdrew its draft documents for an initial public offering (IPO) from the Securities and Exchange Board of India (SEBI) for a second time in May. OYO had experienced internal strife and layoffs in recent months.
The company first sought to go public for roughly $1 billion in October 2021, but because of the poor state of the market, the share sale was postponed. It filed a confidential “pre-filing” form for an allegedly scaled-back initial public offering (IPO) on March 31, 2023.
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But after the current round is over, the company is free to resubmit the IPO documents.
Ritesh Aggarwal, the founder of Oyo, recently announced that the company made its first-ever annual net profit of Rs 100 crore in FY24. The corporation withheld the 2023–24 revenue estimate.
The company reported a net loss of Rs 1,287 crore for 2022–2023—a 34% decrease from the previous fiscal year. Operating revenue increased to Rs 5,464 crore from Rs 4,871 crore in FY22, a 14.3% increase.
About OYO
OYO is a global platform that offers full-stack technology products and services to empower entrepreneurs and small businesses with hotels and homes. Its goal is to increase revenue and streamline operations while offering customers worldwide easy-to-book, reliable, and affordable lodging.
