Oyo, after pulling back its initial public offering (IPO) application last month, is in advanced talks to secure over ₹1,000 crore from the family offices of notable Indian corporate figures and stock market professionals. Key potential investors include Anand Jain, a corporate strategy consultant; Ramesh and Rajeev Juneja, promoters of Mankind Pharma; and Utpal Sheth, closely associated with the late market expert Rakesh Jhunjhunwala.

The company is scheduled to hold an extraordinary general meeting (EGM) this week to approve the funding, following an expansion of its authorized share capital. This funding round values Oyo at approximately $2.5 billion, a significant decrease of 72% from its peak valuation of $9 billion in 2021.

Additionally, Oyo is nearing the final stages of negotiation with Khazanah Nasional, Malaysia's sovereign wealth fund, which is expected to add significant credibility to the company's capital structure. Sources indicate that the order book from family offices has already amassed around ₹1,000 crore. Initially, Oyo plans to raise about ₹500 crore, with the total amount expected by the end of the month.

This move comes at a crucial time for Oyo, as the hospitality industry is gradually recovering from the severe impacts of the COVID-19 pandemic. The fresh capital is expected to support Oyo's strategic initiatives to enhance its technology infrastructure, improve customer service, and expand its global footprint. Furthermore, the funding will provide a much-needed boost to the company's cash reserves, aiding in the stabilization of its operations and enabling it to compete more effectively with rivals in the hospitality sector.