Sources close to the matter have told TheCapitol that Oyo, a big operator in global hospitality, is closing in on $100-125 million of fresh funding that would value the company at $2.5 billion. According to a TechCrunch report, sources have confirmed that the global budget hotel chain has been closing on fundraising to raise approximately $100 million-$125 million, pegging its valuation at $2.5 billion.
"Fresh fundraise of about $100 million to $125 million that slashes its valuation to $2.5 billion".
Oyo has yet to respond to this report.
The company had announced its plans to refile its IPO documents with SEBI early last month, after refinancing its existing $450 million TLB to a lower pricing. This is likely to yield annualised savings of $8-10 million in the first year and $15-17 million in subsequent years.
According to Founder and CEO Ritesh Agarwal, Oyo has achieved its first profitable financial year in 2023–24, during which it has reported a net profit of Rs 100 crore. Agarwal had shared the achievement with his post: "This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of about Rs 1,000 crore," Agarwal had posted on X.
Global credit rating agency Fitch has upgraded the credit rating for Oyo, recognising improved performance and robust cash flows. Agarwal added, "FY25 promises to be even more exciting."
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