OYO raises $50 million from Incred at 76% valuation cut

.

Online hotel aggregator OYO has raised Rs 417 crore (around $50 million) from Incred at a valuation of Rs 19,756 crore (around $2.38 billion), which is 76 percent lower than its peak valuation of $10 billion.

This funding is part of a broader $100 million round that the unicorn is raising from family offices and high net-worth individuals before it refiles its draft prospectus for an initial public offer.

Entrackr reported the development first, citing regulatory filings from the Ministry of Corporate Affairs.

In May, the hospitality unicorn formally withdrew its IPO application for the second time even as it is looking to refinance a $450 million loan repayment and raise money via fresh issue of shares.

Sources close to the developments said that OYO clocked an adjusted EBITDA of Rs 888 crore ($107 million) in FY24, compared to Rs 274 crore ($ 33 million) in FY23.

"In FY24, the company added about 5,000 hotels and 6,000 homes globally. The gross booking value (GBV) per storefront per month for hotels stood at Rs 3.32 lakh ($4,000). The travel tech platform's gross margins improved in FY24, reaching Rs 2,508 crore ($302 million), up from Rs 2,350 crore ($283 million) in FY23, and operating costs also improved, decreasing from 19 percent of GBV in FY23 to 14 percent of GBV in FY24," said a person in the know.

In June, Fitch Ratings upgraded the credit rating of OYO, citing the hospitality company's strengthened financial profile. In FY24, OYO expanded its portfolio by adding 5,000 hotels and 6,000 homes globally.