OYO, has announced that it has raised a TLB funding of $660 million from global institutional investors. The offer was oversubscribed by 1.7 times and the company received commitments of close to $1 bn from institutional investors.
The company will utilize these funds to retire its past debts, strengthen the balance sheet and other business purposes including investment in product technology.
According to a statement, “OYO is the first Indian startup to be publicly rated by Moody’s and Fitch, two of the leading international rating agencies. Fitch and Moody’s rated OYO’s senior secured loan B and B3 (stable outlook), respectively, on the back of the company’s sound business model and resilient financial profile with significant potential upside. This is a milestone transaction as OYO is the first Indian company to raise capital through the TLB route.”
Commenting on the financing, Abhishek Gupta, Group Chief Financial Officer, OYO, said, “We are delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors. 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 high-value potential. 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.”
Dr. W. Steve Albrecht, a member of OYO’s Board of Directors and Chairman of the Audit Committee, commented, “As a part of OYO’s board, it’s heartening for me to see the strong interest from the investor community in the company, leading OYO to become the first Indian startup to be independently assessed by the world’s leading credit rating agencies – Moody’s and Fitch. Today, OYO has 100K+ partners globally who are running successful businesses by utilizing OYO’s proprietary technology, products, and revenue management capabilities for delivering trusted accommodations for guests.”
JP Morgan, Deutsche Bank, and Mizuho Securities served as the lead arrangers for this financing.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.