Oyo Founder Eyes $3.8 Bn Valuation With New Investment: Report
Agarwal had previously led OYO’s Series G funding round with an investment of Rs 830 crore, acquiring USD 100 million worth of shares
Oyo founder Ritesh Agarwal is seeking fresh funding for his hospitality startup at a valuation of USD 3.8 billion, according to media reports. Through his investment vehicle, Redsprig Innovation Partners, Agarwal has proposed injecting USD 65.1 million into the SoftBank-backed company.
Ritesh Agarwal, Founder and CEO of OYO, is likely to increase his stake in the company by purchasing USD 60 million (Rs 550 crore) worth of shares at Rs 42.60 per share. This price reflects a 45 per cent premium to his last purchase in August 2024, showcasing his confidence in the company after ten consecutive profitable quarters, as per sources.
With the latest acquisition, Agarwal’s shareholding will increase from 30 per cent to 32 per cent. The additional funds are expected to support OYO's recent acquisition of the U.S.-based hospitality chains Motel 6 and Studio 6.
This new valuation marks a 38 per cent premium over Oyo's recent USD 2.3 billion valuation, at which it raised USD 175 million. However, according to media reports, it remains significantly lower than the company’s 2019 peak valuation of USD 10 billion. To date, Oyo has secured more than USD 3.4 billion in equity and debt, as per Tracxn data.
Agarwal had previously led OYO’s Series G funding round with an investment of Rs 830 crore, acquiring USD 100 million worth of shares. The round also saw participation from family offices and private investors, including InCred Wealth, J&A Partners (the family office of Mankind Pharma promoters), ASK Financial Holdings, and renowned investor Ashish Kacholia.
OYO reported a net profit of Rs 158 crore in Q2 FY2025, building on a Rs 132 crore profit in Q1. This brings the company's H1 FY2025 net profit to Rs 291 crore, marking a significant turnaround from the Rs 91 crore net loss reported in the same period last year. Revenue for Q2 FY2025 rose to Rs 1,578 crore, a 12 per cent increase from Q1’s Rs 1,413 crore. EBITDA for Q2 grew by 27.4 per cent to Rs 266 crore, compared to Rs 174 crore in Q1.
The company projects crossing Rs 2,000 crore in EBITDA in FY2025-26, significantly boosting its topline. Earlier this year, OYO reported its first-ever annual profit of Rs 229 crore for FY2024, alongside an eight-quarter streak of positive Adjusted EBITDA. The company's Adjusted EBITDA grew by 215 per cent in FY2024, reaching Rs 877 crore compared to Rs 277 crore in FY2023.
The hospitality giant is reportedly preparing to file for an initial public offering within two months, marking its third attempt, according to media reports.
