Reports indicate that Oyo, the budget hotel startup from India, has closed a new funding round, raising approximately $100-125 million at a valuation of $2.5 billion. This marks a significant decrease from its previous valuation of $10 billion in 2019.
Financial advisors of Oyo have stated that the reduced valuation is justified as it has decreased by around 70%, however, the business is now becoming profitable. There are plans to take Oyo public within the next 18-24 months.
Oyo was once a prominent startup in India with major investors such as SoftBank, Airbnb, and Microsoft. The company had plans for an IPO in India starting from 2021 but has withdrawn the plan twice in the past 4 years.
Source: TechCrunch
TLDR: Oyo, a once high-flying startup in India, has closed a new funding round at a reduced valuation, signaling a shift towards profitability and plans for a potential IPO in the future.
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