Oyo secures new funding at significantly reduced $2.5B valuation

Oyo, the Indian budget-hotel chain startup, is finalising a new fundraising round estimated between $100 million and $125 million, significantly reducing its valuation from $10 billion in 2019 to $2.5 billion. This funding effort follows Oyo's recent decision to abandon its plans for an initial public offering (IPO). The company, which has received backing from investors including SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft, has been reaching out to high-net-worth individuals for this round of funding. The deal is expected to be completed within the next 18 to 24 months.

The startup, headquartered in Gurgaon, has also been targeting the family offices of prominent Indian corporate executives and stock market experts for investments. Potential investors include Anand Jain, Ramesh and Rajeev Juneja, and Utpal Sheth. The fundraising, subject to approval at an extraordinary general meeting, may see founder and CEO Ritesh Agarwal raise a portion of the funds from Khazanah Nasional, with the rest coming from domestic investors. The average investment from family offices is anticipated to be between Rs 15-30 crore.