Hospitality Major Oyo Raises USD 65 Mn for Global Expansion and Strategic Growth Oyo plans to deploy the funds towards global expansion, including potential acquisitions, strengthening business strategies, and other corporate initiatives.
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Hospitality platform Oyo has secured INR 550 crore (approximately USD 65 million) in fresh funding from Redsprig Innovation Partners, an affiliate of its founder Ritesh Agarwal.
The infusion was approved via a special resolution to issue 12.91 crore equity shares at INR 42.6 each, as per regulatory filings.
This funding has elevated Oyo's valuation to USD 3.79 billion, marking a 59.2% increase from its previous Series G valuation of USD 2.38 billion. The equity issuance represents a 1.728% stake dilution.
Oyo plans to deploy the funds towards global expansion, including potential acquisitions, strengthening business strategies, and other corporate initiatives.
This marks Agarwal's second major capital commitment to Oyo in 2024, following a USD 175 million investment in August through his Singapore-based Patient Capital fund.
Additionally, Nuvama Wealth & Investment Limited recently acquired shares worth INR 100 crore in Oyo's parent company, Oravel Stays Limited, signaling strong investor interest.
The funding comes at a critical juncture as Oyo eyes a public listing. Despite flat revenues of INR 5,389 crore in FY24 compared to INR 5,464 crore in FY23, the company achieved a net profit of INR 230 crore by slashing expenses by 16%. However, it has delayed its IPO plans twice, citing market conditions. Oyo has announced it will refile its draft red herring prospectus (DRHP) post the closure of its ongoing funding round.
The Gurugram-based company's recent strategic moves underscore its commitment to strengthening its financial position and global footprint, paving the way for an eventual IPO.
