(Bloomberg) -- Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, is in discussions to lead a $400 million funding round in Oyo Hotels & Homes Pvt., according to people familiar with the matter.
The Indian hotel-booking company backed by Softbank Group Corp., is seeking to raise funds for expansion and cutting debt, the people said, asking not to be named as the information is not public. Avendus Capital Pvt. is advising the company on the fund raise, they said.
The once-high-flying company, founded by Ritesh Agarwal, filed for an initial public offering for the second time in March, after slashing the target amount to be raised by about two-thirds, Bloomberg reported. While the travel market has improved from the pandemic-era trough, Oyo — once valued around $10 billion as India's Airbnb — is yet to decide on a timing for the IPO.
Talks are still ongoing and Khazanah can still decide to not invest, said the people. Oyo is also holding talks with other investors for the fund raise, they said. Oyo reported 13 billion rupees ($156 million) net loss in the twelve month ending March 2023.
Representatives for Khazanah and Oyo didn't respond to emails seeking comments. A spokesperson for Avendus declined to comment.
Khazanah has been ramping up investments in India with banking companies including logistics provider Xpressbees and fast food chain Wow! Momos.
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