Gurugram based, Indian multinational hospitality chain of leased and franchised hotels, homes, and living spaces Oyo has recently secured Rs.416.85 crore (approximately $50 million) from InCred Wealth and Investment. The funding is coming after a gap of almost three years for the multinational hospitality unicorn.

The managerial board of Oyo has passed a special resolution to issue 14,37,41,379 Series G CCPS at an issue price of Rs. 29 each to raise Rs. 416.85 crore or $50 million, according to its regulatory filing accessed from the Registrar of Companies (RoC).

Oyo will use these newly lifted fund for growth, global expansion (including acquisitions), and enhanced business plans for fulfilling the future agendas of the company.

As per the data intelligence platform The Kredible, the company is now being valued at around Rs.19,756 crore or $2.38 billion post-allotment. Significantly, the new investor will command a 2.11% stake in the company (post allotment).

During August, globally acclaimed tech giant Microsoft, had invested $5 million in the Lightspeed-backed firm at a valuation of $9.6 billion. The latest capital has come at a valuation haircut of more than 70% from its peak.

Lately, the founder of Oyo Ritesh Agarwal mentioned that the firm has recorded its maiden annual net profit of Rs. 100 crore in FY24. Yet, the company has not disclosed their revenue for the last fiscal. In FY23, its revenue from operations grew 14.3% to Rs. 5,464 crore from Rs. 4,871 crore in FY22. During the period, the firm cut down losses by 33.7% to Rs. 1,287 crore.

Recently Oyo has withdrawn its draft papers (DRHP) for the second time in the wake of unfavorable conditions. The company can refile their IPO papers after the conclusion of the ongoing round in which Oyo is likely to raise more capital.

Major investor of the company SoftBank has reduced its valuation to $3.4 billion in 2022, but the company has declined the markdown.