Ritesh Agarwal, the founder and CEO of Oyo, is seeking to secure fresh investment for his hospitality startup at a valuation of USD 3.8 billion, as per recent media reports. Through his investment firm, Redsprig Innovation Partners, Agarwal plans to invest USD 65.1 million into Oyo. This move could raise his ownership stake in the company from 30 percent to 32 percent.
Agarwal intends to buy USD 60 million worth of shares at Rs 42.60 per share, which is a 45 percent higher price compared to his last purchase in August 2024. This decision shows his strong belief in Oyo’s performance after achieving ten consecutive profitable quarters.
Supporting Oyo’s Expansion Plans
The additional funds will help Oyo with its recent purchase of Motel 6 and Studio 6, two U.S.-based hospitality chains. This new valuation of USD 3.8 billion is 38 percent higher than the USD 2.3 billion valuation from its last USD 175 million fundraising. However, it is still lower than Oyo’s peak USD 10 billion valuation in 2019.
Previously, Agarwal led Oyo’s Series G funding by investing Rs 830 crore (around USD 100 million). Other participants in that round included InCred Wealth, J&A Partners (linked to Mankind Pharma’s promoters), ASK Financial Holdings, and investor Ashish Kacholia.
Oyo has raised more than USD 3.4 billion in total funding, including both equity and debt, as reported by Tracxn.
Strong Financial Performance
Oyo’s financial reports show significant growth. The company achieved a net profit of Rs 158 crore in Q2 FY2025, following a Rs 132 crore profit in Q1. This brought its H1 FY2025 net profit to Rs 291 crore, a major improvement from a Rs 91 crore net loss in the same period last year.
Revenue also rose to Rs 1,578 crore in Q2 FY2025, up 12 percent from Q1’s Rs 1,413 crore. EBITDA grew by 27.4 percent, reaching Rs 266 crore in Q2, compared to Rs 174 crore in Q1.
Looking Ahead: IPO Plans
Oyo expects its FY2025-26 EBITDA to cross Rs 2,000 crore, enhancing its overall revenue. Earlier in FY2024, Oyo reported its first-ever annual profit of Rs 229 crore and showed consistent positive Adjusted EBITDA over eight quarters. The Adjusted EBITDA for FY2024 grew by 215 percent, reaching Rs 877 crore from Rs 277 crore in FY2023.
Oyo is reportedly preparing to file for an initial public offering (IPO) within the next two months, marking its third attempt at going public.
