Ritesh Agarwal increases stake in OYO: To strengthen his stake in OYO, founder Ritesh Agarwal has invested Rs 830 crore in the company through his Singapore-based entity Patient Capital. This investment is part of OYO’s latest funding round, in which the travel technology giant raised a total of Rs 1,457 crore. Following this capital infusion, Agarwal’s stake in the company will increase from 29.97 per cent to 32.57 per cent.
Sources familiar with the transaction indicate that Agarwal’s significant investment is aimed at not only avoiding dilution of his stake but also expressing confidence in OYO’s future potential. The investment is reportedly supported by several Singapore-based family offices, underscoring Agarwal’s continued commitment to the company’s growth.
Oravel Stays Ltd, the parent company of OYO, has managed to raise Rs 1,457 crore from a consortium of investors, marking the closure of its Series G funding round. This round was ratified by an overwhelming 99.99 per cent of shareholders during an Extraordinary General Meeting (EGM) on August 8, indicating strong support for the company’s management.
The latest funding values OYO at approximately $2.4 billion, in line with the valuation set during the first tranche of the Series G, which was issued to InCred in July. The capital was raised through the issue of mandatory convertible cumulative preference shares (CCCPS), each priced at Rs 29. These shares will be converted into equity, ensuring that the valuation is in line with the previous rounds.
The newly raised funds are expected to boost OYO’s expansion plans and strengthen its global presence. The company has been steadily working towards an initial public offering (IPO).IPO), and this latest round of investment constitutes an important step in that direction.
Several prominent investors participated in this Series G round of funding, including InCred Wealth, J&A Partners (the family office of Mankind Pharma’s promoters) and ASK Financial Holdings. InCred Wealth, which played a leading role in the fundraising, will receive 2,628,4483 shares, translating to an investment of approximately Rs 76 crore, in addition to the Rs 416.85 crore it had invested earlier.
J&A Partners and ASK Financial Holdings will be issued 4,137,9310 shares and up to 48,27,586 shares respectively, while Patient Capital Investments Pte Ltd will receive 28,620,6897 shares.
Additionally, the EGM also approved increasing OYO’s authorised share capital from Rs 13,411,359,300 to Rs 16,311,359,300, providing the company with greater financial flexibility as it continues to grow.
In a related development, Sumer Juneja, Managing Partner and Head of EMEA and India at SoftBank Investment Advisors, has been appointed as a non-executive director on Oravel’s board. His appointment, approved with 99.99 percent of the votes, reinforces the SoftBank Vision Fund’s continued involvement in OYO’s strategic planning.
(with PTI inputs)
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