OYO Unlisted Share Aiming To Raise $200 Million at $4.5-5 Billion

Oravel Stays, the parent company of travel tech giant OYO, is reportedly in discussions to secure $200 million through a primary funding round. This move is strategically aimed at financing its potential acquisition of G6 Hospitality, which operates Motel 6, a well-known economy hotel chain in the United States.

Funding Discussions in Early Stages

Although the negotiations are still in their early phases, OYO is actively engaging with both offshore institutional investors and Indian private entities. The company is seeking to bolster its global portfolio, and the acquisition of G6 a significant expansion into the US budget hotel market. Motel 6, known for offering affordable accommodations, aligns with OYO’s strategy of tapping into the economy and budget-friendly hotel segments worldwide.

A Follow-Up to Previous $175 Million Round

This potential funding round comes on the heels of OYO’s previous successful raise of $175 million. That round was led by the company's founder and supported by several family offices and private investors, including InCred Wealth and J&A Partners. This fresh injection of funds is expected to continue the momentum of the company's aggressive expansion plans.

Strategic Significance of the G6 Acquisition

Acquiring G6 Hospitality does not only strengthen OYO’s presence in the U.S. market but also adds to its ability to compete globally with major hotel chains. Motel 6’s vast footprint across North America complements OYO’s mission to become a dominant player in the economy hotel sector.

OYO’s Unlisted Share Continued Growth Trajectory

In recent years, OYO has diversified its global reach, entering markets across Asia, Europe, and the Americas. This new potential acquisition, combined with the additional capital, would further enable the company to enhance its service offerings, improve operational efficiency, and cater to a broader customer base.

OYO's Focus on Global Expansion

OYO’s talks for a $200 million funding round signal its unwavering focus on growth, both organically and through acquisitions. With a successful raise, OYO will strengthen its position as a formidable player in the global budget hotel sector. Investors are watching closely, as this round may significantly impact OYO’s future trajectory in the competitive hospitality landscape.

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