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India's Oyo, once valued at B, finalizes new funding at .5B valuation | TechCrunch

India's Oyo, once valued at $10B, finalizes new funding at $2.5B valuation | TechCrunch

Oyo, the Indian budget-hotel chain startup, is finalizing a fresh fund raising of about $100 million to $125 million that will bring its valuation down to $2.5 billion, two people familiar with the matter told Tech. told Crunch.

This is a steep drop in the value of the Gurgaon-headquartered startup, which was valued at $10 billion in 2019. The startup, which has struggled to secure institutional investors, has been aggressively seeking high-net-worth individuals in recent months.

“We genuinely feel this asset makes a lot of sense today. Being profitable and @70% discount to previous price. Expected listing in 18-24 months,” InCred, a finance firm working with Oyo. A representative of the company offered in a message (seen by TechCrunch) to a startup founder.

TechCrunch reported earlier last month that Oyo had Looking to raise funds at a valuation of $3 billion or less.. At the time, Oyo vehemently denied “rumours, including the diagnosis”. The new round is likely to be larger in size, said the sources, who requested anonymity because the matter is not public.

The new funding follows Oyo. last month calling off its plans for an IPO.. The startup — which counts SoftBank, PaceXV Ventures, Lightspeed, Airbnb and Microsoft among its backers — has filed its IPO application with the Securities and Exchange Board of India, the Indian markets regulator, twice in the past four years. Has taken it back.

Oyo had initially filed paperwork for a public listing with SEBI in 2021 but withdrew it and resubmitted in 2023. The firm, which has raised more than $3 billion to date, Raise $1.2 billion in IPO at $12 billion valuation. In 2021

Once one of the most popular Indian startups, Oyo operates a variety of OS to help hoteliers accept digital bookings and payments. The startup once operated in dozens of markets, including the US and Europe, but has since put its international game on hold.

He observed. Net profit of $12 million According to founder and chief executive Ritesh Agarwal, in the fiscal year ended March.

Agarwal took out a $2 billion loan in 2019 to increase his stake in Oyo, which was then valued at $10 billion. They Invested $700 million as seed capital in Oyo. and spent $1.3 billion on secondary purchases of Oyo shares. The startup has since not commented on the status of the loan.

Indian newspaper Economic Times Also reported Monday about the new funding.

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