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  3. OYO reportedly negotiating new funding round at $3 billion valuation

OYO reportedly negotiating new funding round at $3 billion valuation

8 May 2024

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Key Takeaways

  • Attractiveness to Investors: Despite valuation turbulence, OYO remains attractive to investors, as evidenced by Malaysia's sovereign wealth fund Khazanah's interest.

  • Operational Challenges: Internal disputes with SoftBank and IPO setbacks point to operational challenges.

  • Financial Stability: Agarwal's revenue forecast underscores financial resilience amid funding uncertainties, signaling OYO's potential for sustained growth.

  • Attractiveness to Investors: Despite valuation turbulence, OYO remains attractive to investors, as evidenced by Malaysia's sovereign wealth fund Khazanah's interest.

  • Operational Challenges: Internal disputes with SoftBank and IPO setbacks point to operational challenges.

  • Financial Stability: Agarwal's revenue forecast underscores financial resilience amid funding uncertainties, signaling OYO's potential for sustained growth.

oyo unlisted shares

Oravel Stays (OYO Rooms)

DRHP filed4.44%

Expert Analysis

OYO Faces Valuation Turmoil: Potential Dip to $3 Billion Amid Funding Talks.

Expert Analysis:

  • Valuation Dip and Funding Talks: OYO's potential valuation dip to $3 billion or less, as per TechCrunch, from its $10 billion peak in 2019, signifies a significant shift.

  • OYO Denies Decreased Valuation Claims:

    • OYO refutes claims of decreased valuation, citing the absence of concrete transactions.

    • SoftBank's alleged internal reduction to a $2.7 billion valuation was deemed irrational by OYO.

    • Company spokesperson denies devaluation rumors and underscores focus on performance and earnings.

  • OYO Halts IPO Amid Funding Talks:

    • OYO withdraws draft red herring prospectus for IPO amidst ongoing funding discussions.

    • Initial IPO filing in 2021 aimed to raise $1.2 billion at a $12 billion valuation.

    • SEBI's non-approval was cited as the reason for withdrawal, signaling a regulatory hurdle.

  • Revenue Growth Amid Funding Uncertainties: 

    • Despite ongoing funding discussions and the withdrawal of OYO's IPO, CEO Ritesh Agarwal projects revenue to surpass $682 million for the fiscal year ending in March.

    • Anticipation of revenue growth signals the company's confidence amidst funding challenges.

Publisher:News Bytes