According to sources, Oravel Stays Ltd, the parent company of OYO, has secured Rs 1,457 crore in a recent funding round led by a consortium of investors. This IPO-bound unicorn raised approximately Rs 1,040 crore in its Series G funding round, which follows a previous raise of Rs 416.85 crore in the same series, marking the conclusion of this funding round. Documents accessed by PTI reveal that the additional equity issuance was overwhelmingly approved by 99.99% of shareholders during an Extraordinary General Meeting (EGM) held on August 8.
As noted by sources, the newly raised capital will be allocated to support OYO’s growth and global expansion strategies. The company’s valuation remains consistent at $2.4 billion, in line with the first tranche of the Series G funding round issued to InCred in July, according to a source.
The investment is being made through Compulsory Convertible Cumulative Preference Shares (CCCPS), each priced at Rs 29, maintaining the valuation consistent with the recent Series G raise. This funding round saw participation from InCred Wealth, which led the raise, along with contributions from J&A Partners (the family office of Mankind Pharma promoters) and ASK Financial Holdings.
InCred will receive 2,62,84,483 shares, J&A Partners 4,13,79,310 shares, ASK Financial up to 48,27,586 shares, and Patient Capital Investments Pte Ltd 28,62,06,897 shares. In total, 35,86,98,276 additional shares will be issued, each priced at Rs 29.
This allocation translates to an investment of around Rs 76 crore from InCred, in addition to the Rs 416.85 crore they had recently invested. Serial investor Ashish Kacholia is also participating through InCred. Additionally, Patient Capital is contributing Rs 830 crore, J&A Partners Rs 120 crore, and ASK Financial Holdings Rs 14 crore. The investment from the Mankind Pharma family is channeled through their family office, J&A Partners, as confirmed by sources.
During the EGM, shareholders also approved an increase in the company’s authorized share capital from Rs 13,41,13,59,300 to Rs 16,31,13,59,300. Moreover, the appointment of Sumer Juneja, Managing Partner and Head of EMEA & India at SoftBank Investment Advisors, as a Non-Executive Director on Oravel’s Board was also proposed and approved with 99.99% votes. Sumer will join the Board as a nominee of the SoftBank Vision Fund.
