India’s second-most valuable startup, Oyo, saw its valuation plummet from $10 billion to $2.4 billion following a recent funding round, according to multiple sources that spoke with TechCrunch.
The Gurugram-based startup has secured $173.5 million in its Series G funding round. InCred Wealth, Affected person Capital and J&A Companions invested within the new spherical.
According to Tracxn, Oyo’s current valuation stands at around $3.3 billion, comprising a mix of equity and debt financing, with its total capital raised exceeding this figure.
TechCrunch reported in May that Oyo was looking to raise a funding round that would give the company an estimated valuation of $4 billion. “We categorically refute all claims, including those referenced in the article, and are committed to setting the record straight,” said a representative from the financial services company, speaking exclusively to TechCrunch in May. “There’s no such thing as a concrete transaction, let alone a meaningful valuation discussion at this early stage.”
The minimal decline in valuation is hardly a surprise. SoftBank, with a stake of more than 40% in Oyo, privately valued the Indian startup at around $2.7 billion as of 2022. Oyo claimed at the time that there was “no logical basis” to justify the markdown of its valuation.
Among its investors are prominent firms such as SoftBank, Airbnb, Peak XV Companions, Microsoft, and Lightspeed Enterprise Partners.
The brand new funding comes on the heels of Oyo’s initial public offering (IPO) just a few months ago this year. The Indian startup is seeking to raise approximately $1.2 billion at a valuation of $12 billion at this stage.
India’s market regulator, SEBI, has yet to authorize the startup’s application for an initial public offering (IPO).
