INDIA-BASED ORAVEL STAYS, the parent company of OYO, is reportedly in talks to raise $200 million in a primary funding round, according to Business Standard. The funds are expected to support OYO's potential acquisition of G6 Hospitality, which owns the budget Motel 6 and Studio 6 chains in the U.S.
Oravel Stays aims for a valuation between $4.5 billion and $5 billion, up from its previous $2.4 billion valuation, though still below its earlier $10 billion target. The company is in discussions with offshore institutional and private Indian investors to secure the funding, Business Standard reported.
Among the private investors involved are InCred Wealth, J&A Partners, the Mankind Pharma family office, and ASK Financial Holdings, all of whom previously valued OYO at $2.4 billion.
OYO, backed by SoftBank, has not commented on the matter.
In August, the company raised approximately $175 million (Rs 1,457 crore) from a group of investors. As an IPO-bound unicorn, OYO also secured $125.3 million (Rs 1,040 crore) in a Series G funding round, following an earlier $50 million (Rs 416.85 crore) raise in the same series.
In a turnaround for the company, OYO posted its first-ever profit after tax of $27.7 million or Rs 229 crore during the financial year 2024, recovering from a $153 million or Rs 1,286 crore loss the previous year.
In September, Oravel Stays agreed to acquire G6 Hospitality for $525 million from Blackstone Real Estate. The all-cash transaction is expected to close in the fourth quarter, subject to customary conditions.
