Oyo, A travel tech startup turned unicorn, secured $50 million in funding from a non-banking financial company, Incred. The firm previously refiled IPO papers for a refinancing loan and was looking to raise to $450 million through its sale of dollar bonds. The company plans to use this fresh capital to scale its operations, expand in the global market, and enhance its platform & business plans. Here we are talking about Travel tech company Oyo secured $50 million in a funding round led by InCred at a $2.38 billion valuation.
The board has approved a resolution to allot 14,37,41,379 series G CCPS at an issue price of Rs 29 each to raise $50 million. According to the company filing, the startup will use these fresh proceeds for growth, working capital, and market expansion. The startup data intelligence platform, The Kredible, mentioned the company had a post-allotment valuation of 2.38 billion USD. Entrackr reported that this new investment will account for a 2.11% stake in the firm. The company was
planning to secure $350-$450 million through bond insurance at an interest rate of up to 10 percent.
The company earns most of its revenue through its subscription-based services and charges its users with premium offline services, including transportation, laundry, cooking, and other amenities. The commission earned from bookings and accommodation service sales is the primary revenue source for this travel tech company. The startup offers hospitality and travel services in the hotel and transportation sectors. The platform serves small businesses and entrepreneurs with affordable accommodations and full-stack technology to increase earnings with ease of operation.
Oyo reported a 14.3% increase in its operational revenue to Rs 5,464 crore in FY23. At the same time, the firm controlled its net losses by 33.7 percent to Rs 1,287 crore during the same period. The company reported that its maiden annual net profit stood out at Rs 100 crore in FY24. The firm withdrew its draft papers due to unfavorable market conditions, and it may refile the IPO after closing this ongoing round, which is expecting considerable funding capital.
Conclusion
Oyo is a travel tech company that raised $50 million in funding from wealth and management firm Incred. The company plans to use this fresh capital to scale its operations, expand in the global market, and enhance its platform & business plans. The board has approved a resolution to allot 14,37,41,379 series G CCPS at an issue price of Rs 29 each to raise $50 million. The firm had a post
allotment valuation of 2.38 billion USD. This new investment will account for a 2.11% stake in the firm. The startup will use these fresh proceeds for growth, working capital, and market expansion. The company earns most of its revenue through its subscription-based services and charges its users premium offline services, including transportation, laundry, cooking, and other amenities. Oyo withdrew its DHRP papers for a second time due to unfavorable conditions. The firm may refile for an IPO after closing this ongoing funding round.
