Gurugram-based hospitality unicorn Oyo has raised approximately $50 million (Rs 416.85 crore) from InCred Wealth and Investment. This marks the company’s first significant funding round in nearly three years.

The board at Oyo approved a special resolution to issue 14,37,41,379 Series G CCPS at an issue price of Rs 29 each, raising Rs 416.85 crore ($50 million), as per regulatory filings accessed from the Registrar of Companies (RoC).

The fresh capital will be utilized for growth, global expansion (including acquisitions), and enhanced business plans, according to the filings.

In August 2021, Microsoft invested $5 million in Oyo at a valuation of $9.6 billion. The latest funding comes with a significant valuation reduction of over 70% from its peak.

Oyo’s founder, Ritesh Aggarwal, recently announced the company posted its maiden annual net profit of Rs 100 crore in FY24. However, the company did not disclose its revenue for the last fiscal year. In FY23, Oyo’s revenue from operations grew by 14.3% to Rs 5,464 crore, up from Rs 4,871 crore in FY22. During the same period, the company reduced its losses by 33.7% to Rs 1,287 crore.

Oyo recently withdrew its draft red herring prospectus (DRHP) for the second time due to unfavourable market conditions. The company plans to refile the IPO papers after concluding the ongoing funding round, in which Oyo is expected to raise additional capital.

Oyo’s major investor, SoftBank, first reduced its valuation of the company to $3.4 billion in 2022. However, Oyo rejected this markdown at the time.