Oyo is an online hotel accommodation booking platform that has secured $65 million in its fresh funding round. Ritesh Agarwal’s Redsprig Innovation Partners led the round with the participation of the firm’s existing investors. This round increased the startup’s post-money valuation by 59.2 percent to 3.79 billion USD. The company plans to use these fresh proceeds to scale its operations, support global expansion, enhance its platform, and strengthen its business strategies.
The board has approved a resolution to allot 12,91,07,982 equity shares at an issue price of Rs 42.6 per share to raise $65 million. According to the company filing, the startup will use some of this investment for acquisitions and working capital purposes. The company provides a booking platform that allows users to select preferred locations and rooms according to their travel destination. The online platform uses various technologies to offer the best user and online transaction experience. This investment shows investor’s trust in Oyo’s market potential and business model.
The company has secured around $3.41 billion across multiple funding rounds since its inception, including $175 million raised from InCred Capital, J&A Partners Business, and other investors during its series G funding round. The firm posted a valuation of 2.38 billion USD during its series G round. Oyo provides house and hotel booking services in various locations through its application. The startup faces competition from other hospitality offering platforms such as RedDoorz, V Resorts, and QikStay.
Oyo reported its flat scale to be around Rs 5,389 crore in FY24. The firm managed to control its expenses by 16 percent in the same duration. This increased the net profit tax to Rs 230 crore in the last financial year. The hospitality major again withdrew its draft papers for the second time due to unfavorable market conditions. Oyo plans to refile its initial public offering papers after closing its large funding round.
Oyo’s parent company, Oravel Stays Limited sold its Rs 100 crore worth of shares to Nuvama Wealth and Investment Limited in December. The new funding round came just after the firm saw increased investor interest. Oyo also raised $24.2 million during its conventional debt round from JP Morgan. The firm aims to provide better hospitality solutions while strengthening its business and market presence.
Conclusion :
Oyo is a Gurugram-based hospitality major offering an online booking platform for hotel and accommodation booking services. The startup got fresh capital of Rs 550 crore from Ritesh Agarwal’s Redsprig Innovation Partners. The company plans to use this amount to expand its business, enhance its platform, improve its performance capability, and strengthen its business strategies.
The startup uses various technologies to offer a seamless user experience and the best hospitality services. The company got the board’s approval to issue 12,91,07,982 equity shares at Rs 42.6 Each to raise Rs 550 crore. This funding round pushed the firm’s valuation to be around 3.79 billion USD. The company recently secured $175 million in its series G funding round. Oyo competes with other companies like V Resorts.
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