Ritesh Agarwal to raise stake in OYO with Rs 550 crore infusion
Oyo’s founder and chief executive officer Ritesh Agarwal is planning to increase his stake in the company with Rs 550 crore infusion. He is slated to buy another USD 60 million worth of shares from the company at Rs 42.60 per share, a 45% premium to his last purchase in August 2024.
The investment will value the company at about USD 3.8 billion. Agarwal had earlier also led the company’s Series G round in the OYO with an investment of Rs 830 crore.
According to the notice to shareholders, it has been mentioned that the investment will come from Redsprig Innovation Partners, which was floated by Agarwal. An extraordinary general meeting (EGM) will be held on December 9 to approve the fund raise.
OYO’s last funding round of USD 175 million was led by Agarwal who bought USD 100 million worth shares.
With the current two purchases, his shareholding will increase to 32% from 30% held earlier. The additional funding will help in financing the recent acquisition of United States based hospitality chain Motel 6 and Studio 6. Earlier in August, this newspaper reported that the company will go ahead with the initial public offer (IPO) only after a few more back-to-back quarters of profit, which the company feels is bound to happen.
As per the notice to shareholders, it has been mentioned that the investment will come from Redsprig Innovation Partners, which was floated by Agarwal. An extraordinary general meeting (EGM) will be held on December 9 to approve the fund raise. OYO’s last funding round of USD 175 million was led by Agarwal who bought USD 100 million worth shares.
