Oyo, an Indian-origin hotel startup, is currently discussing a new funding round with potential investors, including Malaysia’s sovereign wealth fund, Khazanah. This move could accelerate Oyo’s global expansion plans and strengthen its financial position.
The involvement of Khazanah aligns with its strategy of supporting fast-growing tech firms. However, according to anonymous sources, the value of Oyo could settle around $3 billion, and secondary deals might further decrease it to around $2.5 billion.
Oyo in talks for funding boost
These figures are yet to be officially confirmed due to market fluctuations’ unpredictable nature.
This projected valuation contrasts with Oyo’s cumulative funding in debt and equity over the years. The last major funding round in 2019 significantly boosted the startup’s valuation. In response to these changes, Oyo continues to strategize its financial inflow and investments to maximize its market value.
Even amidst speculative lower valuations, Oyo’s primary stakeholder, SoftBank, as well as other prominent investors like Airbnb, Peak XV Partners, and Lightspeed Venture Partners, continue to back Oyo, reaffirming their faith in the company’s business model and future growth prospects.
Despite focusing on revenue growth and performance enhancement, Oyo remains open to engaging with influential investors. No concrete deals have materialized yet, however.
Lastly, Oyo has been managing the fallout of its decision to withdraw its draft for a potential second IPO aimed at securing a $12 billion valuation in 2021. The planned IPO has not yet received the green light from the market regulator, the Securities and Exchange Board of India (SEBI).
