Hospitality giant Oyo has raised about $175 m in a Series G funding round. It included investors like InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings. The consummation happened consequent to an extraordinary general meeting held on August 8, which approved additional equity issuance with 99.99% voting in its favor.
PC: News18
Singapore-based Patient Capital contributed as much as Rs 830 crore ($100 million), an entity managed by founder and CEO of Oyo, Ritesh Agarwal. J&A Partners invested Rs 120 crore ($14 million) while ASK Financial Holdings put in Rs 14 crore ($1.65 million). Serial investor Ashish Kacholia also participated through InCred.
This fundraise round includes Rs 416 crore ($50 million) raised from InCred last month. However, despite the new inflows, Oyo’s valuation is still stable at USD 2.38 billion—down by 70 per cent from its peak valuation of USD 9.6 billion in August 2021, when it had raised $5 million from Microsoft.
The funds would be utilized to drive Oyo’s growth plans, such as expansion across the world and acquisitions, and for enhancing business plans. This would also form a part of the continuous efforts that the company is making toward building a better market presence and finding newer avenues for the hospitality segment.
Oyo has shown tremendous resilience and agility in times when the markets were difficult. In May, founder Ritesh Agarwal announced the company achieved its first annual net profit of Rs 100 crore in FY24. Revenue from operations rose by 14.3 percent to Rs 5,464 crore in FY23 from Rs 4,871 crore in FY22. During the period, Oyo trimmed its losses by 33.7 percent to Rs 1,287 crore. However, the firm has not filed its audited financial results for FY24 yet.
Despite the financial achievements, OYO has pushed back its plans to go public. Last May, the company withdrew its draft red herring prospectus (DRHP) for the second time, stating that “perhaps the markets were not ideal” for its initial public offering. Oyo will refiling its IPO papers once this substantial funding round is closed.
The recent funding round thus underlines the confidence of the investors in the strategic direction and growth prospects of Oyo. With a bet on global expansion and building operational capacity, Oyo is better placed and bound to benefit from new opportunities within the hospitality sector.
The nutshell of the successful Series G funding round becomes a turning-point moment in the growth trajectory of Oyo. The infusion of close to $175 million would help the company in the pursuit of its strategic objectives, expansion of global footprint, and enhancement of its service offerings. While Oyo steers through the changing market environment, it remains focused on delivering value to stakeholders and furthering innovation in the hospitality segment.
