Oyo is a hospitality service offering travel tech startup turned unicorn that secured $175 million in its series G funding round. The funding round saw the participation of InCred Wealth, J&A Partners, Patient Capital, ASK Financial Holdings, and the family office of Mankind Pharma promoters. The company plans to use this fresh capital to scale its operations, enhance its platform & business plans, and expand its services in the global market.
According to the PTI report, 99.99 percent of shareholders at the EGM held on August 8th approved the issuance of additional equity. The board members previously approved a resolution to allot 14,37,41,379 series G CCPS for Rs 29 each debenture to raise $50 million. The funding round also includes the $50 million raised from a non-banking financial company Incred. The startup data intelligence platform, TheKredible, reported a post-money allotment valuation of the company at 2.38 billion USD. The valuation saw a 70 percent decline compared to the $9.6 billion valuation in August 2021. The company also announced its plans to raise around $450 million at an interest rate of up to 10 percent through bond insurance.
The company earns the majority of its revenue through its subscription-based services and other premium offline services including laundry, transportation, cooking, and other hospitality services. The firm also earns its commission from bookings and sales of accommodation services. The hospitality major offers its services across different sectors including hotels, and transportation. The platform provides affordable accommodations with transportation. The Gurugram-based company pushed back
its plan to go public. The firm withdrew its draft papers due to unfavorable market conditions for the second time. Oyo plans to refile the IPO papers after a large funding round which will close after the ongoing funding round.
Oyo reported a 14.3 percent increase in its operational revenue to Rs 5,464 crore in FY23. The hospitality major also controlled its net losses and saw a decrease of 33.7 percent to Rs 1,287 crore during the same duration. The firm announced that its maiden annual net profit stood out at Rs 100 crore in FY24. According to the data intelligence platform, traxcn Oyo has secured over 3.28 billion USD across its 19 rounds since its inception. Oyo competes with other hospitality companies such as MakeMyTrip, Airbnb, Stanza Living, and more.
Conclusion:
The hospitality major, Oyo secured 175 million USD in its series G funding round led by InCred Wealth, Patient Capital, ASK Financial Holdings, J&A Partners, and the family office of Making Pharma Promoters. The company plans to use this investment to scale its operations, expand its offerings, expand in the global market, and enhance its platform. The startup also plans to use these fresh proceeds for growth, and working capital purposes. The company earns the majority of its revenue from its subscription-based services and by offering transportation, cooking, and other services. Oyo halted its plans to go public for the second time due to unfavorable conditions.
