Gabriel Budi Sutrisno · · 1 min readIndia’s Oyo explores loan refinancing options with 20 entities
Photo credit: Oyo
Oyo is currently in discussions with 20 organizations that are offering the company a better interest rate to refinance a loan, a source with knowledge on the matter told Tech in Asia.
Bloomberg previously reported that the Indian hotel chain was in talks with asset manager Apollo Management Inc. to refinance a US$660 million loan amid an IPO delay. Apollo is just one of the 20 entities Oyo is speaking with, according to the source.
An Oyo spokesperson said that the refinancing plan does not reflect the company’s financial health.
“Since our consistent increase in profits, we regularly get approached for cheaper financing options, but the board hasn’t approved anything, including prepaying some portion,” the spokesperson said.
Oyo plans to go public later this year after delaying to list in 2021 due to market volatiles. The company has turned cash flow positive and expects to end FY2023 with an adjusted EBITDA of about 2.4 billion Indian rupees (US$29.4 million).
Recently, Oyo India CEO Ankit Gupta and Mandar Vaidya, the head of Oyo Europe, left the company.
In December 2022, the company laid off 600 employees as part of a restructuring effort.
See also: Plotting out SoftBank’s 2023 India roadmap
Currency converted from Indian rupee to US dollar: US$1 = 83.2 rupees.
Editing by Thu Huong Le and Jaclyn Tiu
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