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Oyo’s valuation has dropped to $2.4 billion in a recent funding round, down from its peak of $10 billion.
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The budget hotel chain raised $173.5 million from investors, including founder Ritesh Agarwal’s firm Patient Capital.
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Oyo has delayed its IPO plans for the second time this year, amidst a pending approval from SEBI.
Oyo, the budget hotel chain, has seen its valuation drop significantly to $2.4 billion in a recent funding round. This marks a substantial decrease from its peak valuation of $10 billion. The company raised $173.5 million from investors, including founder Ritesh Agarwal’s investment firm Patient Capital.
This valuation cut is not the first for Oyo. Last year, SoftBank, which owns over 40% of Oyo, reduced the internal valuation to $2.7 billion. Oyo had initially filed for an IPO in 2021, aiming to raise $1.2 billion at a $12 billion valuation. However, the IPO application remains unapproved by SEBI, adding to the company’s challenges.
Despite the valuation drop and IPO delays, Oyo still has prominent investors like SoftBank, Airbnb, and Microsoft. However, the company’s recent struggles raise concerns about its future direction and investor confidence. Oyo has not commented on the valuation drop or its current status.
