INDIA-BASED ORAVEL STAYS, the parent company of OYO, is reportedly in talks to raise $200 million in a primary funding round, according to Business Standard.
The funds are expected to support OYO’s potential acquisition of G6 Hospitality, which owns the budget Motel 6 and Studio 6 chains in the U.S.
Oravel Stays aims for a valuation between $4.5 billion and $5 billion, up from its previous $2.4 billion valuation, though still below its earlier $10 billion target.
The company is in discussions with offshore institutional and private Indian investors to secure the funding, Business Standard reported.
Among the private investors involved are InCred Wealth, J&A Partners, the Mankind Pharma family office, and ASK Financial Holdings, all of whom previously valued
OYO at $2.4 billion.
OYO, backed by SoftBank, has not commented on the matter.