Sunday PropTech Limited, the asset acquisition arm of Prism, the parent company of OYO founded by Ritesh Agarwal, has raised ₹125 crore in fresh equity funding. The investment round was led by financial services company InCred, along with participation from a group of private investors. The development was confirmed on November 23 and marks a significant milestone in Prism’s ongoing shift toward owning and managing hotel assets directly.

A Strategy Rooted in Ownership, Not Just Partnerships

OYO,​‍​‌‍​‍‌​‍​‌‍​‍‌ for a long time, expanded via an asset-light model by collaborating with property owners instead of having physical assets of its own. Prism, with Sunday PropTech, has thus moved to a different stage where the question of hotel ownership seems to be at the ​‍​‌‍​‍‌​‍​‌‍​‍‌forefront.

This approach gives the company greater control over property quality, revenue operations, and the overall guest experience. Unlike earlier years where growth was focused on rapid network expansion, Sunday PropTech’s mandate prioritizes long-term value and operational consistency.

The newly raised funds are intended to support this transition, enabling the acquisition and improvement of mid-premium and premium hotels across India.

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Funding With a Direct Business Purpose

Rather than being held for general operational use, the ₹125 crore equity infusion has a clear allocation plan. Sunday PropTech aims to use the capital to build a pipeline of owned hotels in both leisure-heavy destinations and busy business travel markets.

The company also plans to strengthen its asset management structure, an essential step as it moves from partnering to owning, where oversight and operational control become far more important.

Deals Already Progressing, Not Just Planned

One of the most notable developments tied to the funding is the company’s acquisition roadmap. Sunday PropTech is targeting 12 hotel acquisitions during the 2025-26 financial year (FY26). Out of these, seven hotel deals are already in advanced negotiation stages.

Once finalised, these hotels are expected to operate under Prism’s various hospitality brands, including:

• Sunday Hotels
• Townhouse
• Palette Hotels
• And select U.S. based brands under Prism’s portfolio

This multi-brand positioning allows Sunday PropTech to match each asset to a customer segment, from urban business travellers to leisure guests seeking premium experiences.

A Hospitality Market Ready for Scaled, Organised Capital

India’s hotel industry has seen strong momentum over the past year, supported by rising domestic tourism and growing corporate travel. With travellers increasingly expecting standardised, reliable hotel experiences, institutional interest in branded hotel operators has grown sharply.

Sunday PropTech’s funding aligns with this trend, shifting from fast expansion to sustainable, asset-backed growth. Owning hotels rather than only operating them also helps unlock value from underlying real estate, a factor that gains importance as demand and pricing rise in high-traffic destinations.

Backed by Prism’s Expanding Hospitality Portfolio

The investment comes shortly after a major identity shift at the parent entity. Earlier this year, Oravel Stays Limited, founded by Ritesh Agarwal in 2013, officially rebranded as Prism.

Under the Prism umbrella, the company now manages multiple travel and living verticals, including:

• Hotels: OYO, Townhouse, Sunday, Palette, and Motel 6 (in the U.S.)
• Vacation rentals: Belvilla, DanCenter, Studio Prestige and CheckMyGuest
• Extended stays: Studio 6
• Workspaces and events: Innov8 and Weddingz.in

This broader structure reflects Prism’s evolution from a single hotel-brand startup to a diversified hospitality group.

Execution Will Decide the Outcome

Prism​‍​‌‍​‍‌​‍​‌‍​‍‌ is yet to reveal any information about valuation or the next round of funding, but clearly, this investment goes hand in hand with its future perspective. The company will need to decide if it is able to make the following steps for the project to be ​‍​‌‍​‍‌​‍​‌‍​‍‌successful:

• Close the planned hotel acquisitions
• Integrate them smoothly under the right brands
• Maintain operational consistency across the portfolio

If executed well, the funding could become a turning point in Prism’s transition from a rapid-scale hospitality disruptor to a company known for long-term, value-driven ownership and premium guest experiences.

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