OYO Seeks Fresh Funding Of INR 1,000 Cr From Family Offices: Report

Hospitality major OYO is reportedly in advanced discussions to raise a fresh funding of around INR 1,000 Cr, weeks after withdrawing its IPO application.

Citing sources, ET reported, family offices of leading Indian corporate executives, such as Ramesh Juneja and Rajeev Juneja, the promoters of Mankind Pharma, and stock market expert Anand Jain, are likely to pick up a stake in the hotel chain.

Inc42 has reached out to OYO for comments on the development . The story will be updated based on the responses.

Last month, OYO officially withdrew its IPO documents from the market regulator SEBI.

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality service company that aims to provide  easy-to-book and affordable accommodation to customers around the world. The company claims to offer over 40 integrated products and solutions to patrons who operate above 157K hotel and home storefronts in more than 35 countries including India, Europe, and Southeast Asia.

OYO is headed towards hosting an extraordinary general meeting (EGM) on June 18 (Tuesday), to approve the fundraise, where the company will consider the fundraise of around INR 500 Cr.

In May, the travel tech unicorn was in talks to raise a fresh funding round at marked-down valuation, based on reports, where the company is said to have roped in Incred to broker talks with family offices to raise about $80 Mn to $90 Mn at a valuation of $2.3 Bn, 77% lower than the $10 Bn valuation at which it raised its last external round. 

OYO reported its first full year of profitability in the financial year 2023-24 (FY24), posting a net profit of about INR 100 Cr, founder and CEO Ritesh Agarwal claimed.

Taking to social media platform X, Agarwal said OYO logged its eighth straight quarter of positive EBITDA in Q4 FY24. He added that the SoftBank-backed startup’s cash reserves stood at around INR 1,000 Cr at the end of the year.