The market valuation of Oyo, previously ranked as India’s second-most valuable startup with a valuation of $10 billion, has now decreased to $2.4 billion following its latest funding round.
Headquartered in Gurugram, the startup successfully secured $173.5 million in a Series G funding round, with contributions from InCred Wealth, Patient Capital, and J&A Partners.
Earlier in May, TechCrunch disclosed that Oyo was in the process of raising funds, potentially reducing its market valuation to $3 billion or even less. In response to these speculations, a spokesperson from Oyo refuted the claims in May, stating, “We refute all such rumors, including the valuation mentioned in the report. At this juncture, we aren’t engaged in any firm transaction, nor are there discussions regarding valuation.”
The decrease in valuation did not come as a shock. SoftBank, holding a stake of over 40% in Oyo, recalibrated the startup’s valuation to $2.7 billion internally in 2022. At that time, Oyo contested, declaring there was “no logical foundation” for the devaluation.
Prominent investors in Oyo include SoftBank, Airbnb, Peak XV Partners, Microsoft, and Lightspeed Venture Partners.
This recent infusion of capital arrives after Oyo decided to retract its preliminary draft red herring prospectus for conducting an initial public offering (IPO) for the second occurrence this year. Initially, Oyo filed for a public offering in 2021, aiming to generate around $1.2 billion with a valuation target of $12 billion.
The Securities and Exchange Board of India (SEBI) has yet to greenlight the startup’s request for an IPO.
Compiled by Techarena.au.
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