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Oyo is in discussions to raise fresh funds at a valuation of US$3 billion or less, TechCrunch reported, citing people briefed on the situation. The amount is a far cry from the India-based hospitality firm’s US$10 billion valuation in 2019, when its founder Ritesh Agarwal looked to borrow US$700 million to buy back shares.
The potential fundraise might include secondary sales, possibly reducing Oyo’s value to around US$2.5 billion. If the proposed deal happens, the firm’s valuation would be lower than its total disclosed capital raised to date of US$3.2 billion.
However, these potential terms are still under discussion and nothing is confirmed.
Oyo has rejected any claims of a valuation dip, saying no transactions or valuation talks have been finalized.
Back in 2022, SoftBank – one of the Indian firm’s major investors – had also reduced its valuation of the company to US$2.7 billion.
In January this year, Malaysian sovereign fund Khazanah Nasional was reported to be in talks to lead a US$400 million round in Oyo. However, it’s unclear where those talks currently stand, and whether they are distinct to the one TechCrunch reported.
Oyo had announced plans for an IPO last November, but the listing was eventually delayed. That was the second time it had done so – the company had also planned to go public in 2021, when it would have raised roughly US$1.2 billion at a US$12 billion valuation.
See also: Khazanah’s Oyo bet points to greater focus on overseas deals, say investors
Editing by Putra Muskita and Lorenzo Kyle Subido
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