Oyo, the Gurugram-based hospitality unicorn, has raised approximately $50 million (Rs 416.85 crore) from InCred Wealth and Investment. This funding round marks a significant milestone for Oyo, coming after a hiatus of nearly three years.
According to regulatory filings accessed from the Registrar of Companies (RoC), Oyo will issue 14,37,41,379 Series G CCPS at an issue price of Rs 29 each to raise the capital. The funds will be utilized for Oyo’s growth initiatives, including global expansion through potential acquisitions and enhanced business strategies.
Oyo founder Ritesh Aggarwal recently announced the company’s first annual net profit of Rs 100 crore in FY24, though specific revenue figures were not disclosed for the fiscal year. In FY23, Oyo reported a 14.3% growth in operational revenue to Rs 5,464 crore from Rs 4,871 crore in FY22, alongside a 33.7% reduction in losses to Rs 1,287 crore.
The latest funding round reflects a valuation adjustment from Oyo’s peak valuation of $9.6 billion when Microsoft invested $5 million in August 2021. Despite recent challenges and valuation adjustments, Oyo continues to pursue growth opportunities and strategic financial initiatives, including a potential IPO filing once market conditions are favorable.