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

With this round, the startup's valuation will fall by 72 per cent to $2.5 billion from $9 billion in 2021. According to the report, OYO will hold an Extraordinary General Meeting (EGM) to approve the fundraising.
Among the potential investors for the latest fundraise are Anand Jain, a corporate strategy advisor, brothers Ramesh and Rajiv Juneja, promoters of Mankind Pharma, and Utpal Sheth, a close associate of the late Rakesh Jhunjhunwala

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

Incred Wealth helps 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 had posted a profit after tax (PAT) of around Rs 100 crore for FY24, marking its eighth consecutive EBITDA positive quarter.

"While it's nice to see an elated customer or hotel partner, our first cut-throat financials in FY24 have left me drained as well.Our first net financial year was about Rs 100 crore.This was our 8th season.We have a cash balance of around Rs 1000 crore, besides a positive EBITDA, "Ritesh Agarwal, founder of OYO, said on social media platform X.