- Oyo negotiates funding at potential 70% valuation discount to $2.5B.
- Talks follow failed IPO, SoftBank’s internal $2.7B markdown in 2022.
- Investors weigh risks of backing unicorn’s resurgence at fire-sale price.
The once-celebrated Indian budget-hotel chain startup, Oyo, finds itself in negotiations for a new funding round that could slash its valuation by a staggering 70%.
Sources reveal Oyo engages investors, including Malaysia’s sovereign wealth fund Khazanah, exploring valuations as low as $2.5 billion – a far cry from its peak $10 billion valuation in 2019.
Checking in for a fire sale
The proposed terms, if materialized, would represent a significant devaluation for Oyo, even lower than the capital raised over the years.
SoftBank, a major stakeholder owning over 40% of Oyo, had already marked down the startup’s valuation to $2.7 billion internally in 2022.
While Oyo disputes these “rumors,” sources caution that discussions are ongoing, and terms may change or stall.
Unicorn on a tight budget
The funding deliberations follow Oyo’s withdrawal of its draft IPO prospectus for the second time, failing to secure regulatory approval.
As the once-celebrated unicorn seeks a lifeline, investors weigh the risks and potential rewards of betting on Oyo’s resurgence at a steep discount.
