Oyo, the Indian hospitality startup, is aiming to raise Rs.1,000 crore (approximately $120 million) in fresh funding.
The funding is expected to come primarily from family offices of prominent Indian corporate executives and stock market experts.
This fundraise is likely to value Oyo at $2.5 billion, a significant decrease from its peak valuation of $9 billion in 2021.
While the exact purpose of the funds hasn’t been explicitly stated. It’s likely to be used for general corporate purposes, including growth and expansion.
The fundraise is subject to approval at Oyo’s extraordinary general meeting (EGM).
Oyo fundraising is notable because:
- This represents a significant down round for Oyo. Reflecting the challenges faced by the hospitality industry and the broader tech sector.
- Highlights the growing trend of family offices becoming major sources of capital for new-age companies in India.
Finally, this fundraise is a significant move for Oyo as it seeks to secure capital and navigate the evolving business landscape.