OYO’s parent company Oravel Stays raises Rs 1,457 crore: Report

Oyo’s parent company Oravel Stays Ltd has raised Rs 1,457 crore from a consortium of investors in the latest funding round, sources said.

The IPO-bound unicorn has raised around Rs 1,040 crore in Series G funding round. This follows the previous raise of Rs 416.85 crore in the same series and concludes the round.

According to separate documents accessed by PTI, 99.99 per cent of shareholders had approved the issuance of additional equity at the EGM held on August 8.

The capital will be used to support Oyo’s growth and its global expansion plans, sources said.

The additional fund raise would bring the company’s valuation to the same level as the US$2.4 billion raised by InCred in July, a source said.

The investment is being made through mandatory convertible cumulative preference shares, priced at Rs 29 each, which is in line with the recent valuation hike in Series G.

The funding round includes contributions from Incred Wealth, which recently raised funds, as well as contributions from J&A Partners, the family office of MannKind Pharma promoters and ASK Financial Holdings.

InCred will be issued 2,62,84,483 shares, J&A Partners will be issued 4,13,79,310 shares, ASK Financial will be issued 48,27,586 shares and Patient Capital Investments Pte Ltd will be issued 28,62,06,897 shares.

The total additional shares to be issued are 35,86,98,276, priced at Rs 29 per share.

This means InCred will be investing around Rs 76 crore, which is in addition to the Rs 416.85 crore they have recently invested. Serial investor Ashish Kacholia is also investing through InCred.

Apart from this, Patient Capital is investing Rs 830 crore, J&A Partners Rs 120 crore and ASK Rs 14 crore. The MannKind Pharma family is investing through its family office firm J&A Partners, sources said.

At the EGM, shareholders also approved increasing the authorized share capital of the company from Rs 13,41,13,59,300 to Rs 16,31,13,59,300.

The appointment of Sumer Juneja, managing partner and head of EMEA and India at SoftBank Investment Advisors, as non-executive director on the board of Oravel was also tabled at the EGM and approved with 99.99 per cent votes.

Sumner will join Oravel’s board as the nominee of the SoftBank Vision Fund.