Khazanah in talks to lead Oyo’s fundraise

The Indian hotel-booking company backed by Softbank Group Corp is seeking to raise funds for expansion and to cut debt.

KUALA LUMPUR: Khazanah Nasional Bhd, the country’s sovereign wealth fund, is in discussions to lead a US$400mil (RM1.89bil) funding round in Oyo Hotels & Homes Pvt, according to people familiar with the matter.

The Indian hotel-booking company backed by Softbank Group Corp is seeking to raise funds for expansion and cutting debt, the people said, asking not to be named as the information is not public.

Avendus Capital Pvt is advising the company on the fund raise, they said.

The once-high-flying company, founded by Ritesh Agarwal, filed for an initial public offering (IPO) for the second time in March, after slashing the target amount to be raised by about two-thirds, Bloomberg reported.

While the travel market has improved from the pandemic-era trough, Oyo – once valued around US$10bil as India’s Airbnb – is yet to decide on a timing for the IPO.

Talks are still ongoing and Khazanah can still decide to not invest, said the people. Oyo is also holding talks with other investors for the fund raise, they said. — Bloomberg