Oyo, the budget hotel chain, has successfully raised approximately $174 million in its Series G funding round. The investment was led by Patient Capital, which is managed by Oyo’s founder, Ritesh Agarwal, along with contributions from InCred Wealth and J&A Partners. During a recent meeting, Agarwal expressed gratitude towards investors, shareholders, hotel owners, and homeowners for their ongoing support, emphasizing the company’s “healthy growth opportunities for the future” and indicating that the additional capital would bolster its future growth initiatives.
The company, headquartered in India, has been navigating its path towards an initial public offering (IPO). Oyo initially filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi) in late 2021, indicating its intent to go public. However, it has faced several challenges along the way, including withdrawing and refiling its IPO documentation in 2023, only to withdraw it again in May of the same year. Despite these setbacks, Oyo raised over $7 million in a Series F funding round earlier that year and secured a substantial loan of $660 million.
In May 2023, Agarwal announced via X that Oyo had achieved its “maiden net profitable financial year” and celebrated its eighth consecutive quarter of positive EBITDA. This achievement signifies a turning point for the company, indicating improved financial health and operational efficiency. The successful funding round and positive financial indicators suggest that Oyo is positioning itself for future growth and stability within the competitive budget hotel market.
As Oyo continues to adapt and grow, the support from investors highlights their confidence in the company’s long-term potential. The additional funding will be instrumental in supporting Oyo’s strategic initiatives and expansion efforts. With the hotel chain focusing on enhancing its offerings and potentially preparing for another IPO attempt, it aims to solidify its place as a key player in the hospitality industry while addressing the evolving needs of its customers.
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