Oyo, the hospitality giant, has raised approximately $175 million (Rs 1,457 crore) in a Series G funding round, attracting investment from prominent backers including InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings. This fresh infusion of capital follows an equity issuance that was overwhelmingly approved by 99.99% of shareholders during an Extraordinary General Meeting (EGM) on August 8.
Notable investor Ashish Kacholia also participated in this round through InCred. The funding includes Rs 416 crore ($50 million) raised from InCred last month, which contributed to Oyo’s valuation remaining steady at $2.38 billion.
This marks a significant decrease from the company’s peak valuation of $9.6 billion in August 2021 when it secured a $5 million investment from Microsoft. Despite this decline, Oyo’s financial performance shows signs of improvement. In May, founder Ritesh Aggarwal announced that the company achieved its first-ever annual net profit of Rs 100 crore in FY24. The firm’s revenue from operations grew by 14.3% in FY23, reaching Rs 5,464 crore, while losses were reduced by 33.7% to Rs 1,287 crore.
The newly raised funds are earmarked for growth initiatives, global expansion, and potential acquisitions. However, Oyo has paused its plans for an initial public offering (IPO), having withdrawn its draft papers for the second time in May due to unfavourable market conditions. The company indicated it will refile its IPO documents once a significant funding round is completed, which is expected following this latest capital raise.
