Indian budget hotel chain OYO raises $50m from InCred Wealth: Report

Indian budget hotel chain OYO raises $50m from InCred Wealth: Report

The logo of OYO, India's largest and fastest-growing hotel chain, installed on a hotel building is seen through wires in an alley in New Delhi, India, September 25, 2018. REUTERS/Anushree Fadnavis

Indian budget hotel chain OYO has raised about $50 million (Rs 416.85 crore) in fresh funding from InCred Wealth and Investment Services, per media reports.

OYO’s shareholders have issued 14,37,41,379 Series G compulsorily convertible preference shares (CCPS) at Rs 29 each to InCred Wealth and Investment Services to raise the aforementioned amount, Entrackr reported citing the company’s latest filings with the Registrar of Companies (RoC).

The funding, which came after a gap of almost three years, will be used for growth, global expansion (including acquisitions), and enhanced business plans, the report added.

The latest investment has reportedly valued OYO at $2.38 billion post-allotment. 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, recently withdrew its draft papers (DRHP) for an initial public offering (IPO) from the Securities and Exchange Board of India (SEBI) for the second time. The company may, however, refile the IPO papers after the conclusion of the ongoing round, which may see it raising more capital.

The SoftBank-backed company had initially filed to go public in October 2021 for about $1 billion but delayed the share sale due to market conditions. On March 31, 2023, it submitted a confidential “pre-filing” document for a reportedly trimmed-down IPO.

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.

Edited by: Padma Priya

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