Indian hospitality giant OYO has raised Rs 550 Crore (around $65 million) from Redsprig Innovation Partners, owned by the start-up’s founder Ritesh Agarwal. This development comes amid earlier reports of Agarwal looking to increase his stake in the company. This equity issuance will result in a 1.728 per cent dilution of the company’s total stake. The raised funds will primarily be used for global expansion and growth.
Regulatory filing accessed from the Registrar of Companies shows that the OYO board has passed a special resolution to issue 12,91,07,982 equity shares at an issue price of Rs 42.6 each to raise Rs 550 crore.
Previous Investments
This is Agarwal's second major capital infusion in OYO. In August 2024, he led a $175 million round through his Singapore-based fund, Patient Capital. Earlier, Nuvama Wealth & Investment Limited purchased ₹100 crore worth of shares in OYO’s parent entity Oravel Stays Limited, as per a report by CNBC TV18.
Global rating agency Moody’s recently upgraded OYO’s rating from “B3” to “B2”. This new round of funding has raised OYO’s valuation to $3.79 billion, an increase of 59.2 per cent from the previous valuation during Series G, at $2.38 billion.
OYO's Financial History
OYO turned profitable in the financial year 2023-24 (FY24). Despite reporting a flat revenue scale of Rs 5,389 crore, a slight decline from Rs 5,464 crore in FY23, OYO managed to reduce its expenditures by 16 per cent, resulting in a net profit after tax (PAT) of Rs 230 crore for the same period.
The start-up also maintained its profitability in the first two quarters of the current financial year. It reported a profit of INR 132 crore in Q1 FY25 and INR 158 crore in Q2 FY25.
OYO IPO in 2025
The Gurugram-based start-up has withdrawn its IPO draft papers twice due to unfavorable conditions. The firm reportedly said that it would refile the papers after concluding a large funding round, which is about to close after the latest fundraises. However, some reports suggest that OYO IPO's listing date will be around the second week of March 2025.
