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Ritesh Agarwal Buybacks 18.03% Shares In OYO

A news organization found that the company has allotted some 13,169 equity shares with a face value of Rs 1 and a market value of each share of Rs 37,53,434.03.

Ritesh Agarwal’s RA Hospitality Holdings (Cayman) will be infusing Rs 4942.1 cr i.e. worth $693 million in the hospitality startup Oyo, said reports. The information regarding Agarwal buying stakes in Oyo initially came in July 2019. 

A news organization found that the company has allotted some 13,169 equity shares with a face value of Rs 1 and a market value of each share of Rs 37,53,434.03. Agarwal’s company has now received Rs 4942.1 crore worth shares. The decision was taken during a meeting on 21 November wherein a round Series F funding was also closed. The report informed that post the closure of the process of investment and transaction, Agarwal will be holding 18.03% of shares, an increase of around 9% from his pre-investment holdings. 

Earlier in 2019, it was reported that Agarwal was planning to buy $1.5 billion worth shares from Lightspeed and Sequoia along with some $500 will become in the form of primary capital. This money could be used in the company’s expansion models. The information regarding the deal was first put out in media during October 2019 wherein the company informed that Agarwal’s company RA Hospitality Holdings will be investing some $700 million as a primary capital along with around $800 million been invested through other existing investors. Sources say that the capital will be used to grow its business in the United States and in Europe. 

How did the investment round happen?       

During the month of November, Sequoia and Lightspeed Venture Partners sold its 15% shares to the founder of OYO, Ritesh Agarwal for $1.5 billion. The sponsor its buyback, the founder has taken a loan from Nomura and Mizuhu, Japanese banks. After this deal, OYO’s evaluation has doubled with a valuation of $10 billion as compared to its earlier valuation of $5 billion. 

Lighthouse has invested in the company since 2014 with around $28 million and Sequoia has invested around $25 million in OYO.  


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