OYO Secures Rs 1,457 Crore in Latest Funding Round Ahead of IPO

Oravel Stays Ltd, OYO's parent company, raised Rs 1,457 crore from a consortium including InCred Wealth and J&A Partners. The new funding values OYO at USD 2.4 billion. The capital will support OYO's global expansion. Additionally, Sumer Juneja from SoftBank was appointed to the company's board.

Oravel Stays Ltd, the parent company of OYO, has successfully raised Rs 1,457 crore from a consortium of investors in its latest funding round, sources said.

The IPO-bound unicorn secured nearly Rs 1,040 crore in this Series G funding round, which follows an earlier raise of Rs 416.85 crore in the same series, concluding the round. According to documents accessed by PTI, the equity issuance was approved by 99.99 per cent shareholders during an EGM held on August 8.

The additional funds will be utilized for supporting OYO's growth and worldwide expansion plans. The new funding round values the company at USD 2.4 billion, similar to the valuation during the first Series G tranche issued to InCred in July. The investment was made through Compulsory Convertible Cumulative Preference Shares, each priced at Rs 29, consistent with the recent Series G raise.

The funding consortium includes InCred Wealth, J&A Partners—the family office of Mankind Pharma promoters—and ASK Financial Holdings. The deal involves issuing 35,86,98,276 additional shares priced at Rs 29 each. InCred is investing around Rs 76 crore, adding to their recent Rs 416.85 crore investment. Other significant contributions include Rs 830 crore from Patient Capital, Rs 120 crore from J&A Partners, and Rs 14 crore from ASK Financial Holdings. Serial investor Ashish Kacholia is also investing through InCred.

Alongside the fundraise, shareholders approved increasing the company's authorised share capital from Rs 13,41,13,59,300 to Rs 16,31,13,59,300 during the EGM. Additionally, Sumer Juneja, Managing Partner and Head of EMEA & India at SoftBank Investment Advisors, was appointed as a Non-Executive Director on Oravel's Board with 99.99 per cent shareholder approval. Sumer will join the board as a nominee of SoftBank Vision Fund.

(With inputs from agencies.)