OYO, the online hotel aggregator, has reportedly raised ₹417 crore or $50 million from InCred Wealth and Investment at a valuation of ₹19,756 crore ($2.38 billion), a fall of 76 per cent from its peak valuation of almost $10 billion.
According to an Entrackr report, while this latest funding comes after a gap of three years, the travel tech platform will issue 14.37 crore Series G CCPS (compulsorily convertible preference shares) at an issue price of ₹29 each to raise the funds.
Regulatory filing available from the Registrar of Companies (RoC) also showed that OYO will use the proceeds for growth, global expansion, including acquisitions, and enhanced business plans.
In 2021, Microsoft had invested $5 million in the company that valued it at $9.6 billion.
Its valuation in the private market dipped to around $6.5 billion in October 2022 following reports of a markdown of valuation of the hospitality and travel-tech firm by SoftBank in its private books.
OYO in May had withdrawn papers for an initial public offering (IPO) for the second time and was then in talks with new investors for fresh funding.
The start-up has opened its first luxury hotel in Dubai — Palette Royal Reflections Hotel and Spa. This came as the unicorn looked to beef up its premium property portfolio globally.
The company expects the number of Indian tourists to grow significantly in 2024 after Dubai relaxed its visa policy for them earlier this year.
"OYO is expecting more than 1 lakh Indian tourists to visit Dubai this year. Dubai has long been a favourite destination for Indian travellers, thanks to its luxury shopping, stunning architecture, and vibrant culture," the company had said.
