This transaction has taken up Agarwal’s stake in OYO from nearly 10% to 30%.
Ritesh Agarwal, Founder and Chief Executive Officer of Oyo Hotels and Homes, has purchased $2 billion in shares from venture capital firms Sequoia Capital and Lightspeed Venture Partners. This transaction has taken up Agarwal’s stake in OYO from nearly 10% to 30%.
After the buyback of $2 billion shares, the fast-growing Indian hospitality chain OYO has garnered a valuation of $10 billion
Ritesh Agarwal said, “As an entrepreneur and on behalf of the company’s management, I am thankful to have been given the opportunity to rededicate ourselves to the company’s mission of building the world’s most loved hospitality brand that is focused on bringing a better lifestyle for the common man. It is a very exciting time for OYO right now as we make great living spaces come alive across all corners of the world from Texas to Tokyo.”
“Our endeavor continues to be to become the most loved hospitality brand in the coming years. I am deeply humbled and delighted to have gotten the support of all our investors, the board and above all the institutionalized financial partners that have provided the necessary financial support towards realizing this vision. Needless to say, the deal remains subject to shareholder and regulatory approvals,” he added.
Munish Varma, Managing Partner, SoftBank Vision Fund, stated, “We have confidence in Ritesh’s vision for OYO and how the team has come together to build a truly global brand from India. It has been an exciting journey so far and we hope to achieve many more milestones together in the time to come.”
Bejul Somaia, Partner, Lightspeed India Partners Advisors, said, “As the company’s first institutional investor, Lightspeed is fortunate to have been part of OYO’s journey from a fledgling start-up in India to a transformative company in the hospitality industry globally. We remain committed to supporting Ritesh and the OYO team as the company embarks on its next phase of growth globally.”
Mohit Bhatnagar, Managing Director, Sequoia Capital India Advisors, said, “It's been five years since Sequoia India first partnered with Ritesh and his team. Today our footprint stands at 1 million rooms across India, China, SE Asia, Europe and now the US. This is the kind of stuff start-ups and ventures investing dreams are made of. We remain committed to supporting this world-class management team as they continue to create living spaces across the world.”