Nuvama Wealth Buys OYO Shares Worth INR 100 Cr At $4.6 Bn Valuation

Nuvama Wealth and Investment Limited, on behalf of a consortium of family offices, has acquired shares worth INR 100 Cr in IPO-bound OYO’s parent firm, Oravel Stays Limited, through a secondary market transaction, an investment banker familiar with the matter told Inc42.

Notably, the shares were purchased at INR 53 apiece, pegging the valuation of the company at $4.6 Bn.

The shares were sold by OYO’s early investors, InCred Wealth and Huazhu Group Limited (formerly China Lodging).

According to the source cited above, OYO is also eyeing a fresh funding round at a valuation of around $5 Bn. 

“The company’s recent profitability has sparked significant interest in the market, which has further caught the attention of many potential buyers,” the source told Inc42.

This comes as global rating agency Moody’s recently upgraded the corporate family rating of OYO to “B2” from “B3” previously.

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality startup and claims to offer over 40 integrated products and solutions to patrons who operate more than 157K hotels and home storefronts in more than 35 countries, including India, Europe, and Southeast Asia.

Earlier this year, OYO chief Ritesh Agarwal increased his stake in the company with an infusion of INR 550 Cr (around INR 65 Mn). 

The company recently turned profitable in the financial year 2023-24 (FY24) as it managed to control its expenses by trimming its employee costs. 

The unicorn posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year. However, its operating revenue remained almost flat during the year under review. 

Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.