Oyo Secures $175 Million in Series G Funding Round
Gurugram-based hospitality major Oyo has raised Rs 1,457 crore ($175 million) in its Series G funding round from a group of investors, including InCred Wealth, Patient Capital, J&A Partners, and ASK Financial Holdings.
According to a PTI report, the funding round was approved by 99.99% shareholders at an EGM held on August 8. The investors have infused funds totaling Rs 1,457 crore, with Patient Capital contributing Rs 830 crore ($100 million), J&A Partners and ASK Financial Holdings investing Rs 120 crore ($14 million) and Rs 14 crore ($1.65 million), respectively.
Serial investor Ashish Kacholia has also invested through InCred. It is worth noting that Patient Capital is a Singapore-based entity run by Oyo founder and CEO Ritesh Agarwal.
The funding round includes Rs 416 crore ($50 million) raised from InCred last month. Despite the latest investment, Oyo’s valuation has remained unchanged at $2.38 billion.
According to the company’s previous filings, the proceeds from the funding round will be used for growth, global expansion (including acquisitions), and enhanced business plans. This marks a significant development for Oyo, which has seen a sharp decline in its valuation from $9.6 billion in August 2021 to $2.38 billion currently.
Oyo’s founder Agarwal announced in May that the firm had posted its maiden annual net profit of Rs 100 crore in FY24. The company has also reduced its losses significantly, with revenue from operations growing 14.3% to Rs 5,464 crore in FY23 compared to Rs 4,871 crore in FY22. However, the firm is yet to file its audited financials for FY24.
The Gurugram-based firm has put its plans to go public on the backburner for now, having withdrawn its draft papers (DRHP) for the second time due to unfavorable market conditions. Oyo has stated that it will refile the IPO papers after concluding a large funding round, which is now complete.
