OYO to Raise Rs 1000 Cr at a Valuation of $2.5 Billion: Report
- ByStartupStory | June 17, 2024
Hospitality startup OYO is reportedly in talks to raise a fresh round of funding amounting to approximately Rs 1,000 crore ($120 million). This round of funding is primarily being sourced from the family offices of prominent Indian corporate executives and stock market experts, according to a report by The Economic Times.
With this new investment, OYO’s valuation is set to rise by 72%, from $9 billion in 2021 to $2.5 billion. This valuation boost is contingent upon approval at the company’s extraordinary general meeting (EGM) scheduled for Tuesday. Potential investors for this round include notable figures such as Anand Jain, a corporate strategy advisor; Ramesh and Rajeev Juneja, the promoter brothers of Mankind Pharma; and Utpal Sheth, a close associate of the late Rakesh Jhunjhunwala, the report noted.
OYO is also in the final stages of negotiations with Khazanah Nasional, a Malaysian sovereign wealth fund. Khazanah Nasional is reportedly seeking certain rights before finalizing its investment.
Incred Wealth is assisting OYO in pitching this fundraise to a group of high net-worth individuals and has established a special purpose vehicle (SPV) to issue shares in OYO’s parent company to the participating family offices, the report added.
This news comes on the heels of OYO posting a profit after tax (PAT) of nearly Rs 100 crore for the fiscal year 2024, marking the company’s eighth consecutive EBITDA positive quarter.
“While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY24 have me humbled as well. We had our maiden net profitable financial year at nearly Rs 100 crores. This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of about Rs 1000 crores,” stated Ritesh Agarwal, OYO’s founder, on social media platform X.
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