OYO raising funds from founder Ritesh Agarwal at ₹32,000cr valuation

Ritesh Agarwal Invests ₹550 Crore in hospitality chain, Boosting Stake and Driving US Expansion.

Expert Analysis

• Investment Details: 

  • Ritesh Agarwal plans to invest ₹550 crore into the hospitality chain, increasing his stake from 30% to 32%.

  • The investment includes purchasing over 12.9 crore shares at ₹42.60 each, valuing OYO at ₹32,000 crore.

  • The proposal will be discussed at an EGM on December 9 as a special resolution.

• Funding Utilization: Funds will support OYO’s $525 million all deal acquisition of G6 Hospitality (Motel 6 and Studio 6).

• US Expansion and Future Plans:

  • OYO currently operates over 320 hotels across 35 US states and added nearly 100 hotels to its US portfolio in 2023.

  • The company aims to expand by adding 250 hotels in the US this year, with Agarwal's ₹550 crore investment at a 45% premium compared to his previous ₹830 crore purchase in August.

• Recent Funding: OYO’s recent $175 million funding involved key investors, including InCred Wealth, J&A Partners, ASK Financial and star investor Ashish Kacholia.

• Financial Performance: H1 FY25 net profit reached ₹291 crore, recovering from a ₹91 crore loss last year.