TBM Staff - Mumbai
Oyo, once valued at USD 10 billion and recognized as India’s second-most valuable startup, has seen its valuation plummet to USD 2.4 billion in its latest funding round, according to multiple sources cited by TechCrunch. The Gurugram-based budget hotel chain secured USD 173.5 million in Series G funding, primarily from Patient Capital, managed by Oyo founder and CEO Ritesh Agarwal; InCred Wealth, which aggregates investments from high-net-worth individuals; and J&A Partners.
Oyo’s current valuation is now below the total capital it has raised, which Tracxn, a data insights platform, estimates to be around USD 3.3 billion in combined equity and debt financing. In May, TechCrunch reported that Oyo was seeking new funding that could potentially reduce its valuation to USD 3 billion or less. At the time, Oyo dismissed the reports, stating that there were no ongoing valuation discussions.
This marks another chapter in Oyo’s challenging journey, which has been marred by various controversies. The company did not respond to requests for comment on the latest developments. This isn’t the first time Ritesh Agarwal has invested in the company; in 2019, he committed USD 1.5 billion to Oyo at a USD 10 billion valuation. However, Oyo has yet to disclose details on how that capital was secured and its current status.
The decline in valuation was anticipated, especially after SoftBank, which owns over 40% of Oyo, internally reduced the startup’s valuation to USD 2.7 billion in 2022. At the time, Oyo refuted the markdown, stating there was “no rational basis” for it. Oyo’s investor base includes SoftBank, Airbnb, Peak XV Partners, Microsoft, and Lightspeed Venture Partners.
This latest funding round comes after Oyo withdrew its draft red herring prospectus for an initial public offering (IPO) for the second time earlier this year. The company had originally filed to go public in 2021, aiming to raise USD 1.2 billion at a USD 12 billion valuation. However, India’s market regulator, SEBI, has not approved the IPO application.
