Ritesh Agarwal Invests Rs 550 Crore to Boost His Stake in Oyo as Company Hits New Growth Milestones

Oyo’s founder and CEO, Ritesh Agarwal, is set to increase his ownership in the company by purchasing shares worth Rs 550 crore, according to documents seen by ET.

Agarwal will buy the shares at Rs 42.60 per share, which is a 45% premium over his last purchase in August 2024. His previous investment round in Oyo saw him buy $100 million worth of shares as part of a larger $175 million funding led by him. The funding also included investments from family offices and private investors such as InCred Wealth, J&A Partners (associated with Mankind Pharma), ASK Financial Holdings, and investor Ashish Kacholia.

With this new investment, Agarwal’s stake in Oyo will rise to 32%, up from 30%. The aim of this share issuance is to support Oyo’s global expansion plans, including acquisitions and enhancing its business strategy.

Oyo has recently made headlines with its acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate for $525 million in an all-cash deal. The company reported a net profit of Rs 158 crore for Q2 FY2025, improving from Rs 132 crore in Q1. This brings its H1 FY2025 net profit to Rs 291 crore, compared to a loss of Rs 91 crore in the same period last year. Agarwal has projected that Oyo’s profit will rise more than three times to Rs 700 crore in FY2025, up from Rs 229 crore in FY2024.

Oyo’s growth is attributed to its successful expansion across key markets, including India, Southeast Asia, and the United States. The company is also seeing strong growth in its serviced properties worldwide and has formed strategic partnerships, particularly in Europe.

In Q2 FY2025, Oyo’s revenue increased to Rs 1,578 crore, up from Rs 1,413 crore in Q1.