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Oyo, the Indian startup operating a discount hotel network in its core markets of India, Europe and Southeast Asia, raised $660 million from global institutional investors to pay off debt and invest in product technology.
Walloped by the pandemic, which shut down travel in India, Oyo claimed the fundraising as “a milestone transaction as we become the first Indian company to raise capital through the TLB (Term Loan B) route” from institutional investors.
JP Morgan, Deutsche Bank and Mizuho Securities spearheaded the financing.
“We are delighted by the response to Oyo’s maiden TLB capital raise that was oversubscribed by leading global institutional investors,” said Oyo Chief Financial Officer Abhishek Gupta in a statement. “We are thankful for the trust that they have placed in Oyo’s mission of creating value for owners and operators of hotels and homes across the globe. This is a testament to the strength and success of OYO’s products at scale, our strong fundamentals and our high-value potential.”
He added that Oyo is “well-capitalized and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the Covid-19 pandemic.”
Oyo’s two largest markets are India and Europe.
Oyo said investor interest was so strong that the deal, which was oversubscribed by 1.7 times, was upsized 10 percent to $660 million.
Oyo said it is “the first Indian startup to be publicly rated by Moody’s and Fitch,” which ranked Oyo’s secured loan as B and B3, with a stable outlook, respectively.