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Oyo, a leading player in the hospitality industry, has successfully raised ₹1,457 crore (approximately $175 million) in a Series G funding round.
This latest investment comes from a diverse group of investors, including InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings.
Strategic Investment Utilization
Oyo plans to use the newly raised funds for:
- Company growth initiatives
- Expanding global reach
- Enhancing existing business plans
Inside OYO's Series G Funding Round
As per sources, the Series G funding received overwhelming approval, with 99.99% of shareholders voting in favor at an Extraordinary General Meeting (EGM) held on August 8.
- Patient Capital: ₹830 crore ($100 million). Patient Capital, a Singapore-based investment firm, is led by OYO's founder and CEO, Ritesh Agarwal.
- J&A Partners: ₹120 crore ($14 million)
- ASK Financial Holdings: ₹14 crore ($1.65 million)
Additionally, serial investor Ashish Kacholia contributed through InCred Wealth.
Ritesh Agarwal's Increased Stake in OYO
After the equity dilution in the Series G funding, Agarwal's stake will increase from 29.97% to 32.57%, sources told PTI.
Sources close to the transaction stated, "Ritesh has invested to protect his ownership in OYO and signal confidence in the company's prospects. The investment is backed by Singapore-based family offices."
OYO's Valuation and Share Price Details
The recent funding round includes ₹416 crore ($50 million) previously raised from InCred Wealth last month. This current fundraising values the company at $2.4 billion.
OYO's valuation has significantly dropped 70% from $9.6 billion in August 2021 following its previous funding round, which included a $5 million investment from Microsoft.
The investment is being made through Compulsory Convertible Cumulative Preference Shares, each priced at ₹29, aligning with the valuation of the recent Series G raise.
OYO's IPO Plans and Preparations
The firm has been eyeing a public debut for some time. In a strategic move this May, OYO withdrew its Draft Red Herring Prospectus (DRHP) for the second time. The company has indicated its intention to refile the IPO papers once it concludes a significant funding round
This approach demonstrates OYO's commitment to entering the public market from a position of financial strength and stability.
OYO's Financial Milestones.
OYO's journey to profitability has been marked by significant financial milestones. Here's a snapshot of OYO's recent financial performance:
- Oyo Hotels & Homes recorded its first profitable year in FY24, posting a net profit of nearly ₹100 crore, founder Ritesh Agarwal announced on Thursday.
- During the financial year 2023–24 (FY24), Oyo reported its first-ever profit after tax (PAT) of ₹229 crore.
- The company has achieved its eighth consecutive quarter of positive EBITDA and has a cash balance of around ₹1,000 crore.
- The company's inventory grew from 12,938 in FY23 to 18,103 in FY24.
While the company's revenue remained stable, this increased inventory is expected to boost its revenue potential.
Also Read: Oyo Posts First Ever Annual Profit Of Rs 229 Crore In FY 2024
Should You invest in Oyo?
Oyo is spread across 80 countries with 1 million rooms, and this new hotel is an addition to the list but can contribute more than a few rooms combined. The growth line of OYO is rising each year and is driving many to invest in it. TheOYO share price is currentlytrading around ₹44-₹45 per share.
If you want to invest in OYO, today is the best time. Get in touch with Stockify before theOYO rooms share priceincreases. Stockify is India’s leading unlisted stock trading platform. Helping investors like you invest in trendingunlisted sharesfrom the comfort of your zone.
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