Ritesh Agarwal to increase shareholding in OYO with fresh infusion
Founder and CEO of OYO Ritesh Agarwal will increase his shareholding in hotel chain startup OYO to 32% with a fresh infusion of Rs 550 crore according to a recent shareholder notice. The share purchase will be held at a 45% premium from the company’s last round of funding in August.
Ritesh Agarwal, Founder and CEO of hospitality management platform is set to invest an additional Rs 550 crore ($65.1 million approximately) into the company to increase his shareholding in the entity to 32%, from 30% held previously.
The details were mentioned in a company notice for an extraordinary general meeting to shareholders and confirmed by a source for YourStory.
The current infusion will be at a 45% premium, bringing the company’s valuation to $3.4 billion from $2.4 billion in its previous round in August 2024. Agarwal led the company's Series G round with $100 million, with an overall round size of $175 million.
The round had seen participation from family offices and private investors including InCred Wealth, family office of Mankind Pharma J&A Partners, ASK Financial Holdings and investor Ashish Kacholia.
The capital from the Series G round was utilised in part by OYO to acquire G6 Hospitality, the parent company of economy lodging providers Motel 6 and Studio 6 brands across the US and Canada, from Blackstone Real Estate. The $525 million deal was an all-cash transaction, adding 1500 locations to OYO’s network in the US.
OYO reported a net profit of Rs 158 crore in Q2 of FY25, Agarwal had announced in a townhall for the employees. The company has managed to report profits for two subsequent quarters of FY25 according to media reports. Per data from research platform Tracxn, OYO recorded Rs 5,541.6 crore in revenue for FY24 and a net profit of Rs 229.6 crore.
Edited by Affirunisa Kankudti