Oyo is reportedly in talks to secure around ₹1,000 crore from the family offices of prominent Indian corporate executives and stock market experts. The Economic Times reported citing people in the know that potential investors include corporate strategy advisor Anand Jain, Mankind Pharma promoter brothers Ramesh and Rajeev Juneja, and Utpal Sheth, a close associate of the late market expert Rakesh Jhunjhunwala.
This comes as Oyo withdrew its application for an initial public offering (IPO) last month and is scheduled to hold an extraordinary general meeting (EGM) this week to approve the fundraising after increasing its authorised share capital.
Oyo is expected to value at around $2.5 billion, a 72 per cent decrease from its peak valuation of $9 billion in 2021 in the proposed fundraising round. The report also claimed that the SoftBank Group-backed company is nearing completion of negotiations with the Malaysian sovereign wealth fund Khazanah Nasional.
A source said as per the report, “The order book from family offices is now approximately ₹1,000 crore. Oyo intends to allocate a portion to Khazanah Nasional, as its status as a sovereign wealth fund enhances the credibility of the capital table.”
The company will consider approving an initial fundraising of around ₹500 crore and the total funding is expected to be finalised by the end of the month, the report claimed citing people in the know.