Hospitality major Oyo has raised fresh funds from Incred Wealth at a 75% valuation drop, valuing it at $2.4 billion compared to its peak worth of $9.6 billion.
Registered as Oravel Stays Ltd., Oyo has raised Rs 416.8 crore, or roughly $50 million, from Incred Wealth and Investment Services Pvt., giving it a 2.11% stake in the company. Oyo said it will use the funds for expansion, acquisitions and general corporate purposes.
The development was first reported by Entrackr.
The valuation is a drop from its near-$10 billion worth when it raised strategic capital from tech giant Microsoft in 2021.
The Ritesh Agarwal-led firm has also withdrawn its papers for an IPO for a second time, citing unfavourable market conditions. The company had also been in talks with SEBI for expedited approval but did not receive the nod.
The last fiscal year was also the company's first-ever fully profitable year, posting nearly Rs 100 crore in profit, according to Founder and Chief Executive Officer Ritesh Agarwal, who had said that the company's cash balance is also about Rs 1,000 crore.
"I see growth ahead not only in India with emerging travel trends such as premiumisation, spiritual travel, business travel, conferences, and destination weddings, but also in our other key markets of the Nordics, South East Asia, the US, and the UK. Fiscal 2025 will clearly be even more exciting," Agarwal told employees in May.
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