Oyo's Funding Journey: A Rollercoaster Ride
July 4, 2024, 9:30 am
Location: India, Haryana, Gurugram
Employees: 5001-10000
Founded date: 2012
Total raised: $6.34B
Oyo, the Gurugram-based hospitality unicorn, recently raised $50 million from InCred Wealth and Investment, marking its first funding in almost three years. The company issued Series G CCPS at an issue price of Rs 29 each, raising a total of Rs 416.85 crore. This funding will fuel Oyo's growth, global expansion, and enhanced business plans.
Despite facing a valuation haircut of over 70% from its peak, Oyo remains optimistic about its future prospects. Founder Ritesh Aggarwal proudly announced the company's maiden annual net profit of Rs 100 crore in FY24, showcasing its resilience and ability to adapt to changing market conditions.
Oyo's revenue from operations grew by 14.3% in FY23, reaching Rs 5,464 crore. The company also managed to reduce its losses by 33.7% during the same period, demonstrating its commitment to financial sustainability.
However, Oyo faced challenges with its IPO plans, withdrawing its draft papers for the second time due to unfavorable market conditions. The company is now focused on raising more capital before refiling its IPO papers, with plans to secure an additional INR 1,000 crore (USD 120 million) from family offices and stock market experts.
With major investor SoftBank previously reducing its valuation of Oyo, the company has had to navigate through turbulent times. Despite these challenges, Oyo remains determined to forge ahead with its expansion plans and solidify its position in the global hospitality industry.
As Oyo continues its funding journey, it is clear that the company's resilience and adaptability will be key factors in its success. With a focus on growth, global expansion, and enhanced business plans, Oyo is poised to overcome obstacles and emerge stronger than ever before.
Despite facing a valuation haircut of over 70% from its peak, Oyo remains optimistic about its future prospects. Founder Ritesh Aggarwal proudly announced the company's maiden annual net profit of Rs 100 crore in FY24, showcasing its resilience and ability to adapt to changing market conditions.
Oyo's revenue from operations grew by 14.3% in FY23, reaching Rs 5,464 crore. The company also managed to reduce its losses by 33.7% during the same period, demonstrating its commitment to financial sustainability.
However, Oyo faced challenges with its IPO plans, withdrawing its draft papers for the second time due to unfavorable market conditions. The company is now focused on raising more capital before refiling its IPO papers, with plans to secure an additional INR 1,000 crore (USD 120 million) from family offices and stock market experts.
With major investor SoftBank previously reducing its valuation of Oyo, the company has had to navigate through turbulent times. Despite these challenges, Oyo remains determined to forge ahead with its expansion plans and solidify its position in the global hospitality industry.
As Oyo continues its funding journey, it is clear that the company's resilience and adaptability will be key factors in its success. With a focus on growth, global expansion, and enhanced business plans, Oyo is poised to overcome obstacles and emerge stronger than ever before.