OYO Raises $65 Million for Global Expansion

OYO has successfully raised INR 550 crore (approximately $65 million) from Redsprig Innovation Partners, a venture capital firm founded by its CEO Ritesh Agarwal, marking his second significant investment in the company this year. The funds will be allocated towards global expansion initiatives, including potential acquisitions and enhancing business strategies, resulting in a 1.728% dilution of existing stakes. Following this funding round, OYO's valuation has surged to $3.79 billion, reflecting a 59.2% increase from its previous valuation. Despite reporting flat revenues in FY24, OYO achieved a net profit of INR 230 crore through a 16% reduction in expenditures. The company has delayed its IPO plans twice but intends to refile its draft prospectus after completing this funding round. This capital infusion comes as OYO prepares for a public listing while demonstrating a commitment to growth and profitability.