Oyo Raises $65 Million from Founder-Affiliated Entity, Valuation Hits $3.79 Billion

Hospitality technology company Oyo has secured Rs 550 crore ($65 million) in fresh funding from Redsprig Innovation Partners, an entity affiliated with founder Ritesh Agarwal. The investment boosted the company's valuation to $3.79 billion, marking a 59.2% increase from its previous Series G round valuation of $2.38 billion.

According to regulatory filings with the Registrar of Companies, Oyo's board has approved the issuance of 12.91 crore equity shares at Rs 42.6 per share. The funding will dilute the company's total stake by 1.728%.

This investment represents Agarwal's second significant capital injection in recent months. In August 2024, his Singapore-based fund, Patient Capital, participated in a $175 million round. According to news reports, the fresh capital will be used for global expansion, potential acquisitions, and strengthening business strategies.

The funding comes as Oyo reported flat revenue growth in FY24, at Rs 5,389 crore, compared to Rs 5,464 crore in FY23. However, the company achieved profitability with a net profit after tax of Rs 230 crore in FY24, primarily due to a 16% reduction in expenditures.

In a separate development, Nuvama Wealth & Investment Limited reportedly purchased Rs 100 crore worth of shares in Oyo's parent company, Oravel Stays Limited, last month.

The IPO-bound company had withdrawn its draft papers for the second time in May due to unfavorable market conditions. Oyo has indicated plans to refile its IPO papers following the completion of this ongoing funding round.