Oyo-Owned Innov8 Sells Stake At Rs 1,000-Crore Valuation In Round Led By Raymond Family
IPO-bound Oyo had acquired Innov8 in 2019 in an all-cash deal worth $30 million.
Oyo-owned workspace provider Innov8 sold 3% stake in the company at a valuation of Rs 1,000 crore, people aware of the matter told NDTV Profit.
The funding round was led by the Raymond Family Office, which acquired a 1.9% stake in the coworking space operator, they said on the condition of anonymity.
The Raymond Family Office is backed by the promoters of the Raymond Group. It has been diversifying its portfolio through investments in startups across sectors like technology, consumer goods, health and, lately, flexible workspaces.
Innov8 is now planning to double its coworking centres in India to 100 within this year, the sources said.
In January this year, Innov8 had raised Rs 110 crore from investors upon diluting 10% equity through a sale to investors like family offices of Gauri Khan, Mankind Pharma, Rupa Group and Jagruti Dalmia.
Founded in 2015, Innov8 is currently present across Delhi, Gurgaon, Noida, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad and Indore. Its centres host over 8,000 employees for brands like Swiggy, IndusInd Bank, Jio Saavn, PhonePe and Tata Digital.
IPO-bound Oyo had acquired Innov8 in 2019 in an all-cash deal worth $30 million.
Oyo Hotels' founder Ritesh Agarwal met representatives from Japan's SoftBank Group Corp. earlier this month to discuss the company's India listing, people aware of the matter told NDTV Profit.
Agarwal — along with a posse of merchant bankers from Citi, Jefferies, Goldman Sachs Axis Capital and ICICI Securities — presented a plan to dilute as much as 10% stake at a valuation of at least $7 billion, the people added.
However, the meeting yielded no lead banker for the offer and the dealmakers are expected to return to SoftBank with a better plan within the next few months, as is normal course of business for any initial public offering, the people explained.
Oyo, one of SoftBank’s many portfolio companies in India, has been looking for a stock market listing for many years now. The plan was set back when Covid-19 hit the hospitality sector, and the company has been eyeing a successful reattempt ever since.
SoftBank is Oyo's largest shareholder with over 40% stake. Agarwal owns over 30% himself.
The Japanese conglomerate's view is considered important for the IPO's timing, given its significant stake in the hospitality startup.
NDTV Profit has reached out to Oyo for comments on the story.
