Oyo, A travel tech startup turned unicorn secured $50 million in funding from a non-banking financial  company Incred. The firm previously refiled IPO papers for a refinancing loan and was looking to raise  up to $450 million through its sale of dollar bonds. The company plans to use this fresh capital to scale  its operations, expand in the global market, and enhance its platform & business plans. 

The board has approved a resolution to allot 14,37,41,379 series G CCPS at an issue price of Rs 29 each  to raise $50 million. According to the company filing, the startup will use these fresh proceeds for growth, working capital purposes, and market expansion. The startup data intelligence platform, The  Kredible mentioned that the company had a post-allotment valuation of 2.38 billion USD. Entrackr  reported that this new investment will account for a 2.11% stake in the firm. The company was planning to secure $350-$450 million through bond insurance at an interest rate of up to 10 percent. 

The company earns the majority of its revenue through its subscription-based services and by charging  its users with premium offline services including transportation, laundry, cooking, and other amenities.  The commission earned from bookings and sales of accommodation services is the major source of  revenue for this travel tech company. The startup offers hospitality and travel services in sectors  including hotels, and transportation. The platform serves small businesses and entrepreneurs with  affordable accommodations with full-stack technology to increase earnings with ease of operations. 

Oyo reported a 14.3% increase in its operational revenue to Rs 5,464 crore in FY23. While the firm  controlled its net losses by 33.7 percent to Rs 1,287 crore during the same period. The company  reported that its maiden annual net profit stood out at Rs 100 crore in FY24. The firm withdrew its  draft papers due to unfavourable market conditions and it may refile the IPO after closing this ongoing  round which is expecting a huge funding capital.  

Conclusion: 

Oyo is a travel tech company that raised $50 million in its funding round from wealth and management  firm Incred. The company plans to use this fresh capital to scale its operations, expand in the global  market, and enhance its platform & business plans. The board has approved a resolution to allot  14,37,41,379 series G CCPS at an issue price of Rs 29 each to raise $50 million. The firm had a post allotment valuation of 2.38 billion USD. This new investment will account for a 2.11% stake in the firm.  The startup will use these fresh proceeds for growth, working capital purposes, and market expansion.  The company earns the majority of its revenue through its subscription-based services and by charging  its users with premium offline services including transportation, laundry, cooking, and other amenities. Oyo withdrew its DHRP papers for a second time due to unfavorable conditions. The firm may refile  for an IPO after closing this ongoing funding round.