Oyo's valuation drops to $2.4 billion in latest funding round down from peak of $10 billion: Report

Oyo, once valued at $10 billion, has seen its valuation drop to $2.4 billion in a recent funding round, according to TechCrunch. The budget hotel chain raised $173.5 million, mainly from founder Ritesh Agarwal’s investment firm Patient Capital, InCred Wealth, and J&A Partners. This new valuation is now less than the $3.3 billion Oyo has raised over the years.

This isn't the first valuation cut for Oyo. Last year, SoftBank, which owns over 40% of Oyo, reduced the internal valuation to $2.7 billion, a move Oyo dismissed as unfounded. Founder Ritesh Agarwal had previously invested $1.5 billion in 2019 when the company was valued at $10 billion. However, details on this investment's financing and current status remain undisclosed.

The new funding arrives after Oyo delayed its IPO plans for the second time this year. Oyo initially filed for an IPO in 2021, aiming to raise $1.2 billion at a $12 billion valuation. However, SEBI has not approved the IPO application, complicating the company's situation.

Oyo has not commented on the recent valuation drop or its current status. Earlier this year, the company denied rumours about a lowered valuation, stating no formal deals or discussions had occurred. The valuation drop and IPO delays signal uncertain times ahead for Oyo.

Despite challenges, Oyo still has key investors like SoftBank, Airbnb, Peak XV Partners, Microsoft, and Lightspeed Venture Partners. Yet, the company's recent issues raise concerns about its future direction and investor confidence.