Once India's second-highest-valued startup, Oyo's valuation at $10 billion has fallen to $2.4 billion in a new funding round.
The Gurugram-headquartered startup has raised $173.5 million in a Series G funding round. InCred Wealth, Patient Capital and J&A Partners invested in the new round.
TechCrunch reported in May that Oyo was seeking a funding round that could lower its valuation to below $3 billion. “We deny any rumors, including those about the valuation in the article,” a company spokesperson told TechCrunch in May. “At this stage, there are no concrete transactions, let alone any discussions about valuation.”
The valuation cut wasn't a surprise: SoftBank, which owns more than 40% of Oyo, internally lowered its valuation of the Indian startup to $2.7 billion in 2022. Oyo said at the time that there was “no reasonable basis” for the valuation cut.
Oyo's backers include SoftBank, Airbnb, Peak XV Partners, Microsoft and Lightspeed Venture Partners.
The new funding comes after Oyo earlier this year withdrew a red herring draft prospectus for its second initial public offering. The Indian startup had originally filed paperwork to go public in 2021, seeking to raise about $1.2 billion at a valuation of $12 billion at the time.
India's markets regulator SEBI has not approved the startup's IPO application.