India-based hospitality chain Oyo has secured a $50m investment from InCred Wealth and Investment, marking a capital boost for the company after nearly three years.  

This funding round values the company at $2.38bn, which is a 76% decrease from its peak valuation of $10bn in 2019.

The company’s board has approved the issuance of new shares to InCred, resulting in a 2.11% stake for the investor post-investment, according to regulatory filings.

Oyo intends to use the fresh capital for growth initiatives, including global expansion and potential acquisitions.

This investment is part of a larger $100m funding round that Oyo is seeking from family offices and high-net-worth individuals.

Sources close to the matter told MoneyControl: “In FY 2024, 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 Rs3,32,000 ($4,000).

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“The travel tech platform’s gross margins improved in FY24, reaching Rs25.08m ($302m), up from Rs23.50m ($283m) in FY 2023, and operating costs also improved, decreasing from 19% of GBV in FY 2023 to 14% GBV in FY 2024.”

In May, Oyo announced its plans to refile its draft prospectus for an initial public offering (IPO).

However, the same month, the company withdrew its IPO application for the second time, attributing the decision to unfavourable market conditions.

Last month, the company unveiled the Palette Royal Reflections Hotel and Spa, marking its debut luxury hotel in Dubai, UAE.

Situated in the Al Jaddaf area, the new property offers accommodations ranging from 377ft² to 592ft².