Miguel Cordon · · 1 min readOyo finalizes up to $125m raise at discounted $2.5b valuation: report
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Budget hospitality firm Oyo is putting the final touches on a US$100 million to US$125 million raise at a valuation of US$2.5 billion, reported TechCrunch, citing sources familiar with the matter.
Once the deal is finalized, it would mark a significant fall in valuation for the Indian firm, which was valued at US$10 billion in 2019.
The fundraise comes after Oyo abandoned its IPO plans last month. The company had initially attempted to go public in 2021 and refiled in 2023, but India’s Securities and Exchange Board did not approve either filing.
In a letter to potential investors, a spokesperson for InCred – the financial firm linked with Oyo – said that the budget hospitality firm is primed for an IPO within the next two years.
“We genuinely feel that this asset makes a lot of sense today. Being profitable and [at a] 70% discount to the previous valuation. Listing expected in 18-24 months,” the letter read.
Oyo was founded in 2012 and has since attracted backers including SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft. The company has recorded its first-ever net profitable financial year in the 2023 to 2024 period at roughly US$12 million, its founder Ritesh Agarwal said in a post on X.
See also: Khazanah’s Oyo bet points to greater focus on overseas deals, say investors
Editing by Jaclyn Tiu
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