- Malaysia’s sovereign fund Khazanah may lead a $400 million funding round in India’s hospitality startup Oyo.
- The fresh capital would allow debt-laden Oyo to fund expansion while postponing IPO plans.
- An Oyo investment would mark Khazanah’s growing interest in Indian startups.
The Malaysian sovereign wealth fund Khazanah Nasional is engaged in discussions regarding leading a $400 million funding round in Oyo Hotels and Homes, the India-based hospitality and travel startup, according to a Bloomberg report.
The fresh capital would allow Oyo to pay down debt and fund expansion efforts at a time when its plans for an initial public offering (IPO) have been postponed due to turbulent market conditions.
Bridging the gap for Oyo’s IPO plans
Oyo had previously been seeking to raise between $400-600 million via a planned IPO on Indian bourses, but volatile conditions have led it to pause these efforts for the time being.
The new round of funding from Khazanah would help bridge the gap as Oyo continues working towards a future public listing.
Khazanah’s growing interest in Indian startups
Khazanah has recently shown a growing interest in India’s startup ecosystem. It recently contributed $42 million to Wow Momo Foods, a New Delhi-based cloud kitchen operator.
An investment in Oyo would be its most high-profile Indian startup bet so far. It would also provide a vote of confidence in Oyo’s business model, which has Oyo reporting a 14.3% annual revenue increase and a 34% narrowing of losses in its most recent financial year ending in 2023.
