Oyo Founder Ritesh Agarwal to Invest ₹550 Crore as Company Expands Globally
Oyo’s founder and CEO, Ritesh Agarwal, is set to personally invest ₹550 crore into the company as part of a proposal that will be presented during an extraordinary general meeting (EGM) on December 9, 2024. Agarwal plans to acquire over 12.9 crore shares at ₹42.60 each, raising his stake from 30% to 32%. This move comes with a 45% premium compared to his previous purchase in August 2024, which values Oyo at nearly ₹32,000 crore. The investment marks a significant step as Oyo continues its global expansion.
In line with its growth strategy, Oyo has made key acquisitions, including purchasing US-based Motel 6 and Studio 6 from Blackstone Real Estate for $525 million in September 2024. The company aims to expand further its presence in the US, where it has already added nearly 100 hotels in 2023 and plans to add 250 more in 2024. Since it entered into the US market in 2019, Oyo has grown to manage more than 320 hotels across 35 states.
The company, which achieved its first-ever profit of ₹229 crore for the fiscal year 2023-24, has shown strong financial growth. In the September 2024 quarter, Oyo posted a net profit of ₹291 crore, a substantial improvement from the ₹91 crore loss in the same quarter last year. Its revenue also saw a 12% increase, reaching ₹1,578 crore, solidifying its position as a leader in the global hospitality sector.
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