Oyo has raised $660 million in a debt financing round from global institutional investors. The company did not reveal the names of the investors; investors who participated in the round are Fidelity Investments, Citadel Capital Management, and Varde Partners. The company will use these funds to eliminate its past debts, restore the balance sheet, and boost product technology.

“Oyo is well capitalised and on the way to gaining profitability. Our two largest markets have shown profitability at the slightest signs of industry recovery from the Covid-19 pandemic,” said Abhishek Gupta, Group Chief Financial Officer.

According to Oyo, the offer was oversubscribed by 1.7 times, and it also got close to $1 billion from leading institutional investors. Oyo is the first Indian firm to raise capital through the TLB route. TLB refers to a tranche of senior secured syndicated credit facilities from global institutional investors. JP Morgan, Deutsche Bank, and Mizuho Securities worked as the lead arrangers for this financing.

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Oyo claims to be having over 100,000 hotel partners across 80 countries. The development soon after India’s National Company Law Appellate Tribunal (NCLAT) rejected an insolvency case against the hospitality firm.