Is OYO’s $50 Million Funding Round a Sign of Financial Struggles?

OYO Raises $50 Million in Latest Funding Round, Valuation Drops by 76% from Peak

Online hotel aggregator OYO has secured Rs 417 crore (approximately $50 million) from

Incred, at a valuation of Rs 19,756 crore (around $2.38 billion). This new valuation marks a significant decrease of 76% from its peak valuation of $10 billion.

This funding is part of a broader $100 million round that OYO is raising from family offices and high-net-worth individuals before refiling its draft prospectus for an initial public offering (IPO).

The development was first reported by Entrackr, based on regulatory filings from the

Ministry of Corporate Affairs.

In May, OYO withdrew its IPO application for the second time. The company is currently focusing on refinancing a $450 million loan and raising funds through a fresh issue of shares.

Sources close to the matter revealed that OYO achieved an adjusted EBITDA of Rs 888 crore ($107 million) in FY24, a substantial increase from Rs 274 crore ($33 million) in FY23.

“In FY24, OYO added approximately 5,000 hotels and 6,000 homes globally. The gross booking value (GBV) per storefront per month for hotels was Rs 3.32 lakh ($4,000). The travel tech platform’s gross margins improved in FY24, reaching Rs 2,508 crore ($302 million), up from Rs 2,350 crore ($283 million) in FY23. Additionally, operating costs decreased from 19% of GBV in FY23 to 14% in FY24,” according to an insider.

In June, Fitch Ratings upgraded OYO’s credit rating, citing the company’s strengthened financial profile. OYO’s portfolio expansion in FY24 included adding 5,000 hotels and 6,000 homes globally.