- Oyo, once valued at $10B, is finalizing a $100-125M fundraise at a $2.5B valuation.
- The Indian budget-hotel chain startup has shelved its IPO plans twice in four years.
- Oyo reported a $12M net profit for the last fiscal year.
From sky-high to rock-bottom
Indian budget-hotel chain startup Oyo is finalizing a fresh fundraising of $100-125 million, slashing its valuation to $2.5 billion from its previous $10 billion in 2019.
The Gurgaon-headquartered startup has been pitching to high-net-worth individuals in recent months, struggling to raise funds from institutional investors.
IPO dreams deferred, but hope springs eternal
Oyo has shelved its plan for an IPO last month, withdrawing its application from the Indian markets regulator SEBI twice in the last four years.
The startup, which has raised over $3 billion to date from backers like SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft, sought to raise $1.2 billion at a $12 billion valuation in the 2021 IPO.
Once a hot Indian startup, Oyo operates an OS to help hoteliers accept digital bookings and payments.
It has curbed its international play, previously operational in dozens of markets, including the U.S. and Europe. Founder and CEO Ritesh Agarwal reported a net profit of $12 million for the financial year ending March.
