Home Industry Travel and Hospitality Oyo's valuation decreases to $...
Travel and Hospitality
Business Fortune
17 June, 2024
According to two insiders, Oyo is securing new funding between $100 million and $125 million, resulting in a decrease in its valuation to $2.5 billion.
That represents a sharp drop in the startup's value, which was $10 billion in 2019 and has its headquarters in Gurgaon. Lately, the company has been actively approaching wealthy individuals as it tries to obtain funding from institutional investors.
A reporter has observed a message from an InCred representative, a financial institution that collaborates with Oyo, sent to a startup founder. In the message, the representative sincerely expressed their belief that this asset is a tremendous investment opportunity at this time. It is lucrative and currently valued at a 70% reduction from the prior estimate. The listing is expected in 18–24 months.
Last year, Oyo planned to raise money at a valuation of $3 billion or lower. Oyo angrily refuted the claims at the time, especially the valuation one. These people, who prefer to stay anonymous because the information isn't public yet, predict that the new round will be bigger.
Oyo recently postponed its initial public offering (IPO), and as a result, it has now received additional cash. The company, backed by SoftBank, Microsoft, Lightspeed, Peak XV Ventures, and Airbnb, has withdrawn its application for an IPO two times in the last four years from the Indian market regulator, the Securities and Exchange Board of India.
Oyo withdrew their initial application for a public listing from SEBI in 2021 and resubmitted it in 2023. The company has raised over $3 billion and aims to raise $1.2 billion for its 2021 IPO at a $12 billion value.
An Indian company called Oyo assists hotel owners in taking online payments and bookings. The business recently scaled back its international operations, notably its presence in the US and Europe. For the fiscal year that ended in March, the founder and CEO, Ritesh Agarwal, declared a $12 million net profit.