SUMMARY
- Ritesh Agarwal invests ₹550 crore to increase his shareholding in OYO from 30% to 32%, valuing the company at $3.4 billion.
- The funds strengthen OYO’s position after its $525 million G6 Hospitality acquisition and consistent profitability in FY25.
- OYO recorded ₹5,541.6 crore revenue and ₹229.6 crore net profit in FY24, signaling strong financial recovery.
In a strategic move to solidify ownership, OYO’s Founder and CEO, Ritesh Agarwal, has announced a fresh infusion of ₹550 crore into the company. This additional investment will raise his stake from 30% to 32%, valuing the hospitality management platform at $3.4 billion.
The investment comes as part of a broader strategy to enhance OYO’s market standing and expand its operations. The valuation represents a 45% premium compared to its August 2024 valuation of $2.4 billion, reflecting strong investor confidence. This round of funding aligns with Agarwal’s earlier lead in the Series G round, which raised $175 million with contributions from prominent investors like InCred Wealth, Mankind Pharma’s J&A Partners, ASK Financial Holdings, and investor Ashish Kacholia.
The proceeds from the Series G round were partly utilized for the $525 million acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6 brands. This acquisition, completed as an all-cash transaction, added over 1,500 locations to OYO’s network in the United States and Canada, solidifying its footprint in the North American market.
OYO has showcased robust financial performance, reporting a net profit of ₹158 crore in the second quarter of FY25, marking its second consecutive profitable quarter. The company achieved ₹5,541.6 crore in revenue and ₹229.6 crore in net profit during FY24, signifying a turnaround in its financial stability.
This latest capital infusion reinforces Agarwal’s commitment to driving OYO’s growth while paving the way for strategic expansions. Industry experts believe that the move will bolster OYO’s position ahead of its potential IPO plans, showcasing its resilience in a competitive market.
