Ritesh Agarwal to Invest ₹550 Crore in OYO, Increasing Shareholding to 32%
- ByStartupStory | November 18, 2024
Ritesh Agarwal, the Founder and CEO of hospitality platform OYO, is set to invest an additional ₹550 crore (approximately $65.1 million) into the company, increasing his shareholding from 30% to 32%. The development was disclosed in a company notice issued for an extraordinary general meeting (EGM) and later confirmed by a source for YourStory.
The fresh infusion will be at a 45% premium, raising OYO’s valuation to $3.4 billion, a significant jump from $2.4 billion during its previous funding round in August 2024. Notably, Agarwal had led OYO’s Series G funding round with a $100 million investment, part of an overall $175 million round.
The Series G round saw participation from notable family offices and private investors, including InCred Wealth, the family office of Mankind Pharma J&A Partners, ASK Financial Holdings, and Ashish Kacholia. A portion of this capital was used to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, in a $525 million all-cash transaction from Blackstone Real Estate. This acquisition added 1,500 locations across the US and Canada to OYO’s network.
In a townhall with employees, Agarwal highlighted OYO’s financial milestones, announcing a net profit of ₹158 crore in Q2 FY25. Media reports further indicate that the company has achieved profitability for two consecutive quarters of FY25. As per Tracxn, OYO recorded ₹5,541.6 crore in revenue for FY24, with a net profit of ₹229.6 crore.
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