Malaysia's sovereign wealth fund, Khazanah Nasional Berhad, is reportedly engaged in discussions to lead a fundraising round worth $400 million for Oyo Hotels. The Indian hotel-booking company, backed by SoftBank Group Corp., intends to utilize the funds for expansion and to reduce its debts. Avendus Capital Pvt. is said to be assisting in the fundraising process.
Khazanah Nasional Berhad's involvement aligns with its growing investments in India, covering various sectors such as logistics (Xpressbees) and fast food (Wow! Momos).
The discussions with Khazanah are not yet finalized, and the fund may choose not to proceed with the investment. We have yet to receive responses from Khazanah Nasional Berhad, Oyo, and Avendus Capital Pvt. In the meantime, Oyo is exploring alternative funding options with other potential investors.
For the fiscal year ending in March 2023, Oyo reported a net loss of Rs 1,300 crore. Despite facing setbacks, the company, which was founded by Ritesh Agarwal, made a second attempt at an IPO in March and adjusted its fundraising target. Oyo, valued at approximately $10 billion, has not yet confirmed a specific date for its IPO, despite witnessing positive developments in the post-pandemic travel industry.