Indian hospitality giant Oyo has successfully raised ₹550 crore (approximately $65 million) in funding from Redsprig Innovation Partners, an affiliate of its founder Ritesh Agarwal. This strategic investment underscores Oyo’s commitment to expanding its footprint and enhancing its business strategies.
According to regulatory filings accessed through the Registrar of Companies, Oyo’s board approved a special resolution to issue 12,91,07,982 equity shares at ₹42.6 each. The fresh capital injection has raised the company’s valuation to $3.79 billion—a significant 59.2% increase from its Series G funding round valuation of $2.38 billion.
The newly acquired funds will be utilised for several key initiatives, including global expansion, acquisitions, strengthening business strategies, and other corporate objectives. However, the investment will also result in a minor 1.728% dilution of the company’s overall equity.
This marks Ritesh Agarwal’s second major investment in Oyo within the past year. In August 2024, Agarwal led a $175 million funding round through his Singapore-based fund, Patient Capital, reinforcing his unwavering faith in the company’s potential.
Meanwhile, Nuvama Wealth & Investment Limited, formerly known as Edelweiss Securities, recently acquired shares worth ₹100 crore in Oyo’s parent entity, Oravel Stays Limited, further highlighting investor interest in the company.
Despite challenges in recent years, Oyo demonstrated improved financial management during FY24. While revenue remained relatively flat at ₹5,389 crore, compared to ₹5,464 crore in FY23, the company significantly reduced its expenditures by 16%, achieving a net profit after tax (PAT) of ₹230 crore.
Earlier this year, the Gurugram-based company withdrew its draft red herring prospectus (DRHP) for the second time due to unfavourable market conditions. Oyo plans to refile the IPO papers after completing a significant funding round, likely bolstered by this latest investment.
With fresh capital in hand and a robust strategy, Oyo is well-positioned to drive global growth and capitalise on emerging opportunities in the hospitality sector.
