Oyo has officially named Sumer Juneja as a non-executive director on its board. This follows his recent appointment as an additional director representing SoftBank, marking a significant addition to the hospitality company's leadership team. The decision to appoint Juneja was confirmed through a board resolution, as revealed in the company's regulatory filings with the Registrar of Companies (RoC).

 Sumer Juneja's Role and Background 

Juneja is currently the Managing Director for EMEA & India at SoftBank Investment Advisers, where he plays a key role in overseeing investments across multiple regions. He also represents SoftBank on the boards of several major companies, including Lenskart, Swiggy, Eruditus, and Unacademy. Before joining SoftBank, Juneja held prominent positions as a partner at Norwest Venture Partners and as a member of Goldman Sachs’ Asia Special Situations Group, bringing a wealth of experience to Oyo’s board.

 Oyo’s Recent Funding and Valuation Update 

As Oyo gears up for its IPO, the company recently secured $175 million in a Series G funding round. This round was led by Patient Capital, a Singapore-based entity managed by Oyo's founder, Ritesh Agarwal. The latest funding values Oyo at $2.4 billion, a sharp decline from its peak valuation of $9.6 billion in August 2021 when Microsoft invested $5 million in the company.

 Business Turnaround and Financial Performance 

Despite the drop in valuation, Oyo has successfully turned its business around, reporting a profit of Rs 230 crore in FY24, with an operating revenue of Rs 5,389 crore. This is a notable improvement from FY23, where the company recorded a loss of Rs 1,286 crore, highlighting the effectiveness of its recent business strategies.

 IPO Plans and Market Conditions 

Oyo is planning to refile its IPO documents after completing another significant funding round. This follows the company’s decision to withdraw its draft red herring prospectus (DRHP) twice due to unfavorable market conditions. The upcoming IPO is a critical step in Oyo's growth trajectory, with the company aiming to optimize its market position before going public.

 Strategic Focus on Budget Hotels and Luxury Segment Expansion 

To enhance the customer experience in the budget hotel segment, Oyo has taken steps to gain more control over its partners' operations, including services such as laundry and room service. Additionally, Oyo has entered the luxury accommodation market with its new brand, ‘Sunday,’ currently operating in Jaipur, Chandigarh, and Ahmedabad. This brand is a joint venture between Oyo’s parent company and its primary backer, SoftBank, with plans to expand to 25 properties across India by the end of FY25.