OYO, Aiming for IPO, Seeks $400 Million Funding from Malaysia’s Khazanah Sovereign Fund at $6 Billion Valuation
- ByStartupStory | January 30, 2024
Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund, is reportedly leading discussions for a USD 400 million funding round for Oyo Hotels & Homes, the Indian hotel-booking company backed by SoftBank Group.
Oyo is seeking the funds for expansion and debt reduction, with Avendus Capital advising on the fund raise.
Ritesh Agarwal-founded Oyo, once valued at around USD 10 billion, filed for an IPO for the second time in March, with a significantly reduced target amount, reflecting about two-thirds reduction.
While the travel market has seen improvement post the pandemic-era downturn, Oyo, known for its rapid growth, is yet to finalize the timing for its IPO.
The ongoing discussions with Khazanah are subject to the sovereign wealth fund’s final decision on investment, and Oyo is reportedly in talks with other investors for the fund raise. Oyo disclosed a net loss of 13 billion rupees (USD 156 million) for the twelve months ending March 2023.
Khazanah has actively increased its investments in India, involving banking companies like logistics provider Xpressbees and fast-food chain Wow! Momos.
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