The founder of India’s largest hotel chain is injecting $ 2 billion into his own business, increasing his stake in the business and making it India’s second-most profitable start-up.
Ritesh Agarwal to invest $ 700 million in OYO as part of the company’s new $ 1.5 billion fundraising round, with existing investors including Japan’s SoftBank (SFTBF) putting the rest in, OYO said in a statement Monday. It is also buying $ 1.3 billion of existing shares from early investors Lightspeed Venture Partners and Sequoia Capital, with backing from “banks and financial partners,” a spokesperson said.
Agarwal, 25, founded OYO in 2013, taking over budget hotel operations across India and renaming and renovating them for a fee or a share of the revenue. The company quickly became the dominant player in the hotel industry in India and is now aiming for ambitious global expansion.
Ritesh Agarwal founded OYO in 2013.
The latest investment brings Agarwal’s stake to 30% and values OYO at $ 10 billion, according to a person familiar with the matter. This makes it the second Indian startup after digital payments company Paytm, which also counts SoftBank among its biggest investors and is currently valued at around $ 15 billion.
“We truly believe that we will be able to create a truly global brand from India, while ensuring that the business is run efficiently and with a clear path to profitability,” Agarwal said in a statement. .
OYO confirmed that the founder’s stake in the company has increased, but declined to comment on its size. The company also declined to comment on its latest review.
OYO will use most of its new investment to continue its expansion in Europe, where it bought vacation rental company @Leisure earlier this year, and the United States, where it signed on Airbnb as an investor. and recently purchased the Hooters Casino Hotel in Las. Vegas.
It currently operates in 800 cities in 80 countries, including the United States, United Kingdom, China and Japan.