Hospitality startup Oyo is reportedly in talks to raise a fresh round of funding of around Rs 1,000 crore ($120 million), mainly from India's top corporate executives and stock market experts.

With this round, the startup's valuation will drop 72 percent to $2.5 billion from $9 billion in 2021. Oyo will hold an extraordinary general meeting (EGM) to approve the fundraising, the report said.
Potential investors in the latest fundraise include corporate strategy advisor Anand Jain, Mankind Pharma's promoter brothers Ramesh and Rajeev Juneja and Utpal Sheth, a close aide of the late Rakesh Jhunjhunwala.

Additionally, the firm is in the final stages of negotiations with Malaysian sovereign wealth fund Khazanah Nasional, which is seeking certain rights before finalizing the investment.

Incred Wealth is helping Oyo raise funds for a group of high-net-worth individuals and has created a special purpose vehicle to issue shares in Oyo's parent company to participating family offices, the report said.

Last month, the company reported a profit after tax (PAT) of around Rs 100 crore in FY24, marking its eighth consecutive EBITDA positive quarter.

“While it's nice to see a happy customer or hotel partner, our first cut in fiscal 2014 has me down too. Our first fiscal year net profit was around Rs.100 crores. This was our eighth straight quarter. We have a cash balance of around Rs 1000 crore besides a positive EBITDA,” OYO founder Ritesh Aggarwal said on social media platform X.