Founder Ritesh Agarwal invests Rs 830 Cr in OYO's latest funding round

Ritesh Agarwal, the founder of OYO, has significantly increased his stake in the company by investing ₹830 crore in the latest Series G funding round. Post this investment, Agarwal's holdings in OYO will rise from 29.97% to 32.57%. This strategic move is seen as a step to protect his ownership from dilution and a strong vote of confidence in OYO's future prospects.

The investment was facilitated through Singapore-based family offices and structured via Compulsory Convertible Cumulative Preference Shares (CCCPS), each priced at ₹29, in line with the valuation from the recent fundraising. 

The parent company of OYO, Oravel Stays Ltd, successfully raised ₹1,457 crore in this round, which involved a consortium of investors and was approved by a near-unanimous 99.99% of shareholders during an Extraordinary General Meeting (EGM) on August 8.

This round of funding values OYO at $2.4 billion, with the capital expected to fuel the company’s growth and support its global expansion initiatives. The valuation and terms are consistent with the first Series G tranche, which was issued to InCred in July.

This investment is seen as a strong signal of Agarwal's commitment to the future of OYO, particularly as the company continues to navigate the challenges of the hospitality industry. OYO has been working on expanding its business, improving its operational efficiencies, and preparing for a potential public listing in the near future.