Ritesh Agarwal Invests Rs 830 Crore in OYO's Latest Funding Round

Ritesh Agarwal's Major Investment

Ritesh Agarwal, Founder of OYO, has significantly bolstered the company's finances by investing Rs 830 crore through his Singapore-based entity, Patient Capital. This investment is part of OYO's latest funding round, where the travel tech platform raised a substantial Rs 1,457 crore. Post this Series G funding, Agarwal’s ownership in OYO will increase from 29.97% to 32.57%.

Confidence in OYO's Future

According to sources close to the transaction, Agarwal's investment is aimed at mitigating ownership dilution and showcasing confidence in OYO's long-term prospects. The investment, backed by Singapore-based family offices, highlights Agarwal’s commitment to the company’s success and growth.

Funding Details and Company Valuation

Oravel Stays Ltd, the parent company of OYO, raised Rs 1,457 crore from a consortium of investors in this latest funding round. The additional equity issuance was overwhelmingly approved by 99.99% of shareholders during an Extraordinary General Meeting (EGM) held on August 8.

This round values OYO at $2.4 billion, reflecting the valuation from the first Series G tranche issued to InCred in July. The new investment will be made through Compulsory Convertible Cumulative Preference Shares, each priced at Rs 29, aligning with the recent Series G valuation.

Capital Allocation and Global Expansion

The newly acquired capital will support OYO’s ongoing growth and ambitious global expansion plans. The funds are expected to enhance the company's ability to scale its operations and strengthen its market presence worldwide.