Indian budget hotel chain OYO has raised about $175 million (Rs 1,457 crore) in its Series G funding round from a consortium of investors, PTI reported.
According to the report, the additional equity issuance was approved by 99.99% of shareholders at an EGM held on August 8.
Investors in the round include InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings. Serial investor Ashish Kacholia is also investing through InCred.
The funds will be used for growth, global expansion (including acquisitions), and enhanced business plans, per previous reports.
The latest investment is being made through compulsory convertible cumulative preference shares, each priced at Rs 29. A total of 35,86,98,276 shares are being issued. This would translate to InCred investing around Rs 76 crore, which includes Rs 416 crore ($50 million) it invested in the company last month. Besides, Patient Capital is investing Rs 830 crore, J&A Partners Rs 120 crore, and ASK Rs 14 crore.
OYO has reportedly attained a valuation of $2.38 billion with the latest investment. The SoftBank-backed company was once valued at $10 billion. It had last raised $5 million from US-based tech giant Microsoft in August 2021.
OYO, which faced internal turmoil and layoffs in the past months, withdrew its draft papers (DRHP) for an initial public offering (IPO) from the Securities and Exchange Board of India (SEBI) for the second time in May.
The company had initially filed to go public in October 2021 for about $1 billion but delayed the share sale due to bleak market conditions. On March 31, 2023, it submitted a confidential “pre-filing” document for a reportedly trimmed-down IPO.
The company may, however, refile the IPO papers after the conclusion of the ongoing round.
Recently, Oyo’s founder Ritesh Aggarwal said that the firm posted its maiden annual net profit of Rs 100 crore in FY24. The company didn’t disclose the revenue figure for 2023-24. For 2022-23, the firm had reported a net loss of Rs 1,287 crore, down 34% from the previous fiscal. Its revenue from operations was Rs 5,464 crore, up 14.3% from Rs 4,871 crore in FY22.
