OYO raises ₹1,457 crore in latest funding round for growth and global expansion

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OYO raises ₹1,457 crore in latest funding round for growth and global expansion

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August 11, 2024

OYO raises ₹1,457 crore in latest funding round for growth and global expansion

Aug 11, 2024 02:46 PM IST

OYO raises ₹1,457 crore including contributions from InCred Wealth, J&A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings.

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

1,457 crore from a consortium of investors in the latest funding round” title=”OYO has raised ₹1,457 crore from a consortium of investors in the latest funding round”>

OYO has raised ₹1,457 crore from a consortium of investors in the latest funding round

The IPO-bound unicorn has raised nearly ₹1,040 crore in the Series G funding round. This follows an earlier raise of ₹416.85 crore in the same series and concludes the round.

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According to different documents accessed by PTI, the additional equity issuance was approved by 99.99 per cent shareholders in an EGM held on August 8.

The capital will be used to support OYO’s growth and its global expansion plans, sources said.

The additional fund raise values the company at the same valuation of USD 2.4 billion, as the first Series G tranche issued to InCred in July, a source said.

The investment is being made through Compulsory Convertible Cumulative Preference Shares, each priced at ₹29, consistent with the valuation of the recent raise in Series G.

The funding round includes contributions from InCred Wealth, who led the recent fundraise as well as J&A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings.

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InCred will be issued 2,62,84,483 shares, J&A Partners 4,13,79,310 shares, ASK Financial up to 48,27,586 shares and Patient Capital Investments Pte Ltd 28,62,06,897 shares.

The total additional shares that will be issued is 35,86,98,276, priced at ₹29 per share.

This would translate to InCred investing around ₹76 crore, in addition to the ₹416.85 crore they recently invested. Serial investor Ashish Kacholia is also investing through InCred.

Besides, Patient Capital is investing ₹830 crore, J&A Partners ₹120 crore, and ASK ₹14 crore. The Mankind Pharma family is investing through their family office firm J&A Partners, sources said.

The shareholders also approved increasing the company’s authorised share capital from ₹13,41,13,59,300 to ₹16,31,13,59,300 in the EGM.

The appointment of Sumer Juneja, Managing Partner and Head of EMEA & India at SoftBank Investment Advisors, as a Non-Executive Director on Oravel’s Board was also put up in the EGM and approved with 99.99 per cent votes.

Sumer will join Oravel’s Board as a nominee of Softbank Vision Fund.

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OYO raises ₹1,457 crore including contributions from InCred Wealth, J&A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings.

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