New Delhi, June 17 (SocialNews.XYZ) Hospitality major Oyo is reportedly raising $100-$125 million in fresh funding at a market valuation of $2.5 billion.
According to a TechCrunch report on Monday, citing sources, the global budget-hotel chain is finalising a “fresh fundraising of about $100 million to $125 million that slashes its valuation to $2.5 billion”.
Oyo was yet to immediately comment on the report.
Last month, the hospitality major announced to refile its initial public offer (IPO) papers with the markets regulator Securities and Exchange Board of India (SEBI) after refinancing its existing $450 million Term Loan B (TLB) at a lower interest rate.
With this move, the company anticipates annual savings of $8-10 million in the first year and $15-17 million thereafter.
The company registered its first profitable financial year in 2023-24, with a net profit of Rs 100 crore, according to Ritesh Agarwal, its Founder and CEO.
“This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of about Rs 1,000 crore,” Agarwal had posted on X.
The global credit rating firm Fitch has taken note of the company’s improved performance and strong cash flows, “upgrading our credit rating”.
“FY25 will clearly be even more exciting,” said Agarwal.
Source: IANS
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