Ritesh Agarwal, founder and CEO of the multinational hospitality chain Oyo, has invested Rs 830 crore through his Singapore-based entity, Patient Capital, in the company’s latest funding round. This investment significantly boosts the total funding for the Series G round to Rs 1,457 crore and underscores Agarwal’s confidence in Oyo’s future prospects.
Expansion and Ownership Protection
The recent investment comes as part of Oyo’s Series G funding, which raised Rs 1,040 crore in this tranche, following an earlier raise of Rs 416.85 crore. Agarwal’s investment is intended to prevent further dilution of his stake in the company, which will increase from 29.97% to 32.57%. This move not only protects Agarwal’s ownership but also signals strong confidence in Oyo’s growth trajectory.
Funding Round Details and Valuation
The additional equity issuance was authorized at an Extraordinary General Meeting (EGM) on August 8, where 99.99% of shareholders approved the move. The latest fundraising round values Oyo at an impressive $2.4 billion. The investment will be made through Compulsory Convertible Cumulative Preference Shares, each priced at Rs 29, aligning with the valuation of the Series G funding.
Key Contributors and Global Expansion
Besides Agarwal, other significant contributors to the funding round include InCred Wealth, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings. Notably, J&A Partners is investing Rs 120 crore, while ASK Financial Holdings is contributing Rs 14 crore.
The capital raised will support Oyo’s global expansion plans. Founded in 2013, Oyo has rapidly grown to over 157,000 storefronts across 35 countries. Initially launched in Gurugram, India, the company has expanded its footprint to Malaysia, Europe, the US, and West Asia.
Oyo’s Future Prospects
With this substantial investment, Oyo aims to further enhance its global presence and strengthen its position in the hospitality sector. The funding round highlights the confidence investors and stakeholders have in the company’s ongoing and future ventures.