Ritesh Agarwal Leads $175 Mn Round In OYO, Valuation Cut To $2.37 Bn

Hospitality major OYO has raised INR 1,457 Cr (around $175 Mn) in a down round led by Ritesh Agarwal floated Singapore-based entity Patient Capital, along with J&A Partners and ASK Financial Holdings.

The latest funding will see OYO’s valuation fall from $10 Bn at its peak in 2019 to $2.37 Bn.

Patient Capital has invested INR 830 Cr, while J&A Partners INR 120 Cr and ASK INR 14 Cr. Meanwhile, InCred will also be investing an additional INR 76 Cr through Ashish Kacholia. 

The Arc reported this development first. 

Inc42 has reached out to OYO for comments on the development. The story will be updated based on the response.

The current round also includes July’s INR 417 Cr investment from InCred. 

In May it was reported that OYO was in talks to raise a down round at a valuation of $2.3 Bn.

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality service company that aims to provide  easy-to-book and affordable accommodation to customers around the world. The company claims to offer over 40 integrated products and solutions in more than 35 countries including India, Europe, and Southeast Asia.

The development of fundraise comes after the Delhi NCR-based hospitality unicorn, in May this year, officially withdrew its IPO (initial public offering) documents from the market regulator.

OYO reported its first full year of profitability in the financial year 2023-24 (FY24), posting a net profit of about INR 100 Cr, founder and CEO Ritesh Agarwal claimed.

Taking to social media platform X, Agarwal said OYO logged its eighth straight quarter of positive EBITDA in Q4 FY24. He added that the SoftBank-backed startup’s cash reserves stood at around INR 1,000 Cr at the end of the year.

Updated at 01:47 PM

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