HBI Staff | Hyderabad 
According to ET, Hospitality giant OYO is reportedly in advanced discussions to raise around INR 1,000 crore in fresh funding, just weeks after withdrawing its IPO application.
According to sources cited by ET, family offices of prominent Indian corporate executives, including Ramesh Juneja and Rajeev Juneja of Mankind Pharma, as well as stock market expert Anand Jain, are likely to invest in the hotel chain.
Last month, OYO officially withdrew its IPO documents from market regulator SEBI.
Founded in 2012 by Ritesh Agarwal, OYO is a hospitality service company that aims to provide easy-to-book and affordable accommodations worldwide. The company claims to offer over 40 integrated products and solutions to operators of more than 157,000 hotel and home storefronts across 35 countries, including India, Europe, and Southeast Asia.
OYO is set to host an extraordinary general meeting (EGM) on June 18 (Tuesday) to approve the fundraise, where the company will consider raising around INR 500 crore.
In May, the travel tech unicorn was reportedly in talks to raise a fresh funding round at a marked-down valuation. Reports indicated that the company had enlisted Incred to facilitate discussions with family offices to raise about USD 80 million to $90 million at a valuation of USD 2.3 billion, significantly lower than the USD 10 billion valuation at which it last raised external funding.
OYO reported its first full year of profitability in the financial year 2023-24 (FY24), posting a net profit of about INR 100 crore, according to founder and CEO Ritesh Agarwal. Agarwal shared on social media platform X that OYO logged its eighth straight quarter of positive EBITDA in Q4 FY24. He also noted that the SoftBank-backed startup’s cash reserves stood at around INR 1,000 crore at the end of the year.
