Oyo secures $50 million from InCred, valuing the company at $2.38 billion.

Oyo has secured Rs 416.85 crore (approximately $50 million) from InCred Wealth and Investment, marking its first funding round in nearly three years. According to regulatory filings from the Registrar of Companies (RoC), Oyo's board approved a special resolution to issue 14,37,41,379 Series G CCPS at Rs 29 each, totaling Rs 416.85 crore or $50 million. The company plans to use the funds for growth, global expansion, acquisitions, and enhanced business plans.

TheKredible estimates that Oyo's valuation is now around Rs 19,756 crore or $2.38 billion post-allotment, with the new investor acquiring a 2.11% stake. Previously, in August 2021, Microsoft invested $5 million in Oyo at a $9.6 billion valuation, meaning the latest funding comes with a significant 70% valuation decrease from its peak.

Oyo's founder Ritesh Aggarwal recently announced the company's first annual net profit of Rs 100 crore for FY24, though revenue figures for the last fiscal year were not disclosed. In FY23, Oyo's revenue grew by 14.3% to Rs 5,464 crore, and losses were reduced by 33.7% to Rs 1,287 crore.

Oyo withdrew its draft papers (DRHP) for the second time due to unfavorable conditions but may refile after the current funding round, where it is expected to raise more capital. Major investor SoftBank previously reduced Oyo's valuation to $3.4 billion in 2022, a markdown the company had rejected.