SoftBank-backed Oyo is in talks to raise Rs 1,000 crore ($120 million), primarily from family offices of stock market experts and Indian corporate executives, according to the Economic Times. This fundraising will reduce the company’s valuation to $2.5 billion, down from $10 billion in 2019. Notable participants include Anand Jain, former Reliance Industries executive; Ramesh and Rajeev Juneja, founders of Mankind Pharma; and Utpal Sheth, a close associate of investor Rakesh Jhunjhunwala.
Family offices have become a significant capital source for new-age companies. Investopedia defines a family office as a private wealth management advisory firm for ultra-high-net-worth individuals, offering comprehensive financial and investment solutions.
Oyo will hold an extraordinary general meeting on Tuesday to seek approval for the funding. After withdrawing its initial public offering application, the company entered talks with investors for a new funding round. Following the refinancing of a $450 million loan, Oyo plans to file for an IPO again.
Oyo is in the final stage of negotiations with Malaysia’s sovereign wealth fund, Khazanah Nasional. Ritesh Agarwal, Oyo’s founder, may raise Rs 250–300 crore from domestic investors and Khazanah Nasional.
