In a notable development, hospitality leader OYO has raised approximately $65 million (INR 550 crore) from Redsprig Innovation Partners, a venture capital firm helmed by its founder, Ritesh Agarwal.
This fresh funding highlights Agarwal’s ongoing commitment to bolstering the company’s growth trajectory and market position.
OYO issued 12.91 crore equity shares at INR 42.6 per share to facilitate the capital infusion, as reported in filings with the Ministry of Corporate Affairs. The equity issuance will result in a 1.728% dilution of OYO’s total shareholding, emphasizing Agarwal’s strategic role in shaping the company’s future.
The funds raised will be directed toward several key objectives:
- Accelerating growth initiatives.
- Supporting global expansion efforts, including acquisitions.
- Enhancing OYO’s business strategies and operational capabilities.
- Funding other critical corporate activities.
This financial injection is expected to further solidify OYO’s position as a leader in the hospitality sector while fostering innovation across its services.
The latest investment aligns with OYO’s recent market momentum. Last month, Nuvama Wealth & Investment Limited, formerly known as Edelweiss Securities, facilitated the acquisition of OYO shares worth INR 100 crore on behalf of a consortium of family offices. Industry insiders attributed this interest to OYO’s improved profitability, which has attracted attention from a diverse range of investors.
Adding to its achievements, global credit rating agency Moody’s recently upgraded OYO’s corporate family rating from “B3” to “B2,” reflecting the company’s enhanced financial stability and operational resilience.
This funding marks Ritesh Agarwal’s second significant capital contribution to OYO within a year. In August 2023, Agarwal’s Singapore-based fund, Patient Capital, spearheaded a $175 million funding round, reaffirming his dedication to the company he founded in 2012.
Under Agarwal’s leadership, OYO has evolved into a global hospitality powerhouse, offering over 40 integrated products and solutions to operators of more than 157,000 hotels and home storefronts. With a presence in over 35 countries, including India, Europe, and Southeast Asia, the company continues to innovate and expand its portfolio.
