OYO’s Ritesh Agarwal To Raise Stake With INR 550 Cr Infusion

Hospitality giant OYO’s founder Ritesh Agarwal is increasing his stake in the company with the infusion of INR 550 Cr (around INR 65 Mn). 

The latest investment will increase Agarwal’s shareholding in the company to 32% from 30% earlier, as per sources privy to the matter. 

The investment is aimed at financing the recent acquisition of US based hospitality chain Motel 6 and Studio 6. 

The travel tech major informed its investors in September that the acquisition of Motel 6 and Studio 6 parent G6 Hospitality will take its earnings before interest, tax, depreciation, and amortisation (EBITDA) past the INR 2,000 Cr mark in the financial year 2025-26 (FY26). 

With the fresh infusion, Agarwal is looking to further raise his stake by buying another $60 million worth of shares from the company at Rs 42.60 per share, a 45% premium to his last purchase in August, sources said. 

OYO sent a notice to their investors seeking consent for the issuance of 12.9 Cr equity shares to Redsprig Innovation Partners LLP or any of the Founder’s affiliate entities ahead of an Extraordinary General Meeting (EGM) to be held on December 9. 

As per the notice, the company is seeking consent to issue “up to 12,91,07,982 Equity Shares of the face value of INR 1 each, for cash at INR 42.60 per equity share for an aggregate consideration amounting up to INR 5,50,00,00,034 to Redsprig Innovation Partners LLP or any of the Founder’s affiliate entity on a private placement basis.”

OYO’s parent company, Oravel Stays Ltd in September announced expansion in the US by agreeing to acquire G6 Hospitality, the parent entity of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction.

Last month OYO also launched a B2B venture targeting corporate travel and event planning in India, offering specialised services across its network of over 500 company-serviced accommodations.