- Oyo’s valuation plummets to $2.4 billion in recent funding.
- Founder Ritesh Agarwal contributes significantly to the $173.5 million raised.
- The company shelves IPO plans amid valuation concerns and regulatory challenges.
Oyo, once the darling of India’s startup scene, has seen its valuation tumble from a lofty $10 billion to a more modest $2.4 billion in its latest funding round.
The budget hotel chain managed to scrape together $173.5 million in Series G funding, with Patient Capital, InCred Wealth, and J&A Partners playing bellhop to deliver the cash.
Founder plays room service
Ritesh Agarwal, Oyo’s founder and CEO, didn’t just leave a mint on the pillow – he brought the whole mint factory.
Through his Patient Capital fund, Agarwal made a significant contribution to the round, echoing his previous $1.5 billion personal investment back in 2019 when Oyo was still living it up in the penthouse suite of valuations.
IPO dreams get a ‘Do Not Disturb’ sign
Oyo’s plans to go public have been put on ice, with the company withdrawing its IPO intentions for the second time this year.
Originally hoping to raise a cool $1.2 billion at a $12 billion valuation in 2021, Oyo now finds itself struggling to get past the regulatory front desk.
With its current valuation dipping below its total raised capital of $3.3 billion, it seems Oyo’s road to profitability and public markets might need an extended checkout time.
