Ritesh Agarwal, founder of hospitality giant OYO, is increasing his stake in the company with a INR 550 crore (around $65 million) investment. This move will boost Agarwal’s shareholding from 30% to 32%, according to sources familiar with the matter.
Investment from Ritesh to finance US hospitality chain
The investment aims to finance OYO’s recent acquisition of US-based hospitality chain Motel 6 and Studio 6. In September, OYO informed investors that this acquisition would push its earnings before interest, tax, depreciation, and amortisation (EBITDA) past INR 2,000 crore in the financial year 2025-26.
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Further, Agarwal plans to increase his stake by buying an additional $60 million worth of shares at INR 42.60 per share, a 45% premium to his last purchase in August. OYO has sent a notice to investors seeking consent for the issuance of 12.9 crore equity shares to Redsprig Innovation Partners LLP or affiliate entities ahead of an Extraordinary General Meeting (EGM) on December 9.
Company to issue up to 12,91,07,982 Equity Shares – OYO
“The company is seeking consent to issue up to 12,91,07,982 Equity Shares of the face value of INR 1 each, for cash at INR 42.60 per equity share for an aggregate consideration amounting up to INR 5,50,00,00,034 to Redsprig Innovation Partners LLP or any of the Founder’s affiliate entity on a private placement basis,” the notice states.
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In September, OYO’s parent company, Oravel Stays Ltd, announced its US expansion with the $525 million acquisition of G6 Hospitality, parent entity of Motel 6 and Studio 6 brands, from Blackstone Real Estate.
Recently, OYO launched a B2B venture targeting corporate travel and event planning in India, offering specialised services across its network of over 500 company-serviced accommodations.
