As per a report in Bloomberg, Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund, is currently in talks with Oyo Hotels & Homes Pvt. to lead a $400 million funding round, according to sources familiar with the matter.
The Indian hotel-booking firm, backed by Softbank Group Corp., is reportedly in the process of securing funds to fuel its expansion efforts and alleviate debt. Individuals familiar with the matter, who preferred to remain anonymous as the details are not public, revealed that Avendus Capital Pvt. is guiding the company in its fundraising endeavors.
Founded by Ritesh Agarwal, Oyo filed for an initial public offering for the second time in March, reducing the target amount to be raised by about two-thirds. Despite the travel market’s improvement from the pandemic-era trough, Oyo, valued around $10 billion as India’s Airbnb, is yet to decide on the IPO’s timing.
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Talks are still ongoing, and Khazanah can choose not to invest, as mentioned by insiders. Concurrently, Oyo is in discussions with other investors for the fundraise, as indicated by the same sources. Oyo reported a net loss of 13 billion rupees ($156 million) for the twelve months ending March 2023.
Khazanah and Oyo representatives did not reply to emails requesting comments. Likewise, a spokesperson for Avendus opted not to provide a comment.
Khazanah has been increasing its investment activities in India, focusing on banking companies such as logistics provider Xpressbees and the fast-food chain Wow! Momos.
Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion
