OYO, the hospitality giant, has secured INR 550 Crore (roughly $65 million) in funding from Redsprig Innovation Partners, the venture capital firm founded by OYO’s CEO, Ritesh Agarwal. This marks a significant move in Agarwal’s ongoing efforts to increase his stake in the company, a plan first reported by Inc42 in November 2024.
OYO Raised a Huge Amount
According to filings with the Ministry of Corporate Affairs, OYO issued 12.91 crore equity shares at a price of INR 42.6 each to raise the funds. The company intends to use this capital to accelerate its growth plans, support its international expansion, make strategic acquisitions, and further enhance its business operations. This equity offering will lead to a slight dilution of the company, reducing the total stake by 1.728%.
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In addition to this raise, Nuvama Wealth & Investment Limited, formerly known as Edelweiss Securities, recently purchased INR 100 Crore worth of OYO shares on behalf of a consortium of family offices. This comes amid growing market interest following OYO’s recent profitability, which has caught the eye of several potential investors.
Positive Momentum for OYO
The positive momentum for OYO is also reflected in the recent upgrade of its corporate family rating by Moody’s from “B3” to “B2.”
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Founded in 2012 by Ritesh Agarwal, OYO has grown into a hospitality powerhouse, offering a broad portfolio of over 40 integrated products and solutions. The company currently manages more than 157,000 hotels and home properties across 35 countries, including India, Europe, and Southeast Asia.
