Oyo is on the brink of securing a fresh round of funding totaling between $100 million to $125 million, according to sources familiar with the matter. This investment round is set to value Oyo at approximately $2.5 billion, marking a significant reduction from its peak valuation of $10 billion back in 2019.
Oyo has shifted its focus to garnering support from high-net-worth individuals in recent months. Representatives from InCred, a financial firm collaborating with Oyo, emphasized the current attractiveness of the asset, citing profitability and a substantial discount from its previous valuation. They hinted at a potential listing within the next 18 to 24 months.
Earlier reports had indicated that Oyo was seeking a valuation around $3 billion or lower, which the company had previously denied. However, sources now suggest that the new funding round could exceed initial expectations.
Oyo’s decision to pursue additional funding comes shortly after it withdrew its IPO plans last month, marking the second instance in four years that the startup has pulled back from such efforts.
Despite setbacks in its IPO journey, Oyo continues to enjoy backing from major investors including SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft. The startup, founded by Ritesh Agarwal, has amassed over $3 billion in funding to date and operates a comprehensive platform aiding hoteliers in managing digital bookings and payments.
Founder Ritesh Agarwal‘s involvement has been notable, particularly his significant personal investment in Oyo. In 2019, Agarwal secured a $2 billion debt to bolster his stake in the company, which was then valued at $10 billion. Details regarding the current status of this debt remain undisclosed by the startup.