📝 Oyo raising a down round

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Oyo, an Indian budget-hotel chain startup, is reportedly in talks with investors, including Malaysia's sovereign wealth fund Khazanah, to raise a new funding round that may significantly reduce the company's valuation to $3 billion or even as low as $2.5 billion, down sharply from its peak valuation of $10 billion in 2019. Despite the ongoing discussions, which may still change or not result in a funding round, the valuation cut reflects broader challenges, as SoftBank, holding over 40% of Oyo, had already internally marked down its valuation to $2.7 billion in 2022. Oyo has contested these valuation concerns, maintaining its focus on performance and earnings without any concrete transaction underway. This news comes amid Oyo's second withdrawal of its IPO filing, initially aimed to raise about $1.2 billion at a valuation of $12 billion.

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