By Vineet Kumar 
OYO founder and CEO Ritesh Agarwal is making a bold move to increase his stake in the hospitality giant. He plans to invest ₹550 crore, purchasing over 12.9 crore shares at ₹42.60 each. This move will raise his stake in the company from 30% to 32%, bringing OYO’s valuation to a staggering ₹32,000 crore.
The investment will be discussed during an Extraordinary General Meeting (EGM) scheduled for December 9, where shareholders will vote on the proposal. For perspective, the share price is 45% higher than Agarwal’s last purchase in August 2024, showcasing his confidence in OYO’s growth trajectory.
Aiming for Global Expansion
This fresh infusion of funds will support OYO’s ambitious plans, including the recent $525 million all-cash acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate. The acquisition is a significant step as OYO continues to grow its footprint in the United States, a market it entered in 2019.
OYO already operates over 320 hotels across 35 US states and has been on an expansion spree, adding nearly 100 hotels to its portfolio in 2023. The company aims to grow this number further by adding 250 more hotels in 2024. Imagine OYO signage lighting up bustling streets in cities like Los Angeles, Dallas, and Chicago, welcoming travelers with their iconic budget-friendly stays.
Financial Turnaround
OYO’s finances tell an impressive story of transformation. In the second quarter of FY25, the company reported a net profit of ₹158 crore, up from ₹132 crore in the first quarter. Its revenue for Q2 stood at ₹1,578 crore, marking a 12% sequential growth, and the EBITDA surged by 27.4% to ₹266 crore.
This momentum reflects OYO’s broader financial rebound. For instance, in FY24, the company posted its first-ever profit after tax (PAT) of ₹229 crore and achieved an eye-popping 215% growth in adjusted EBITDA, reaching ₹877 crore. This was a significant jump from ₹277 crore in FY23, proving OYO is not just growing but thriving.
A Leader Backing His Vision
Ritesh Agarwal’s confidence in OYO is unwavering. He previously led the company’s Series G funding round, investing ₹830 crore himself. The round also saw participation from prominent investors like InCred Wealth, J&A Partners (Mankind Pharma’s family office), ASK Financial Holdings, and stock market star Ashish Kacholia. These strategic investments and partnerships underscore the faith in OYO’s ability to deliver value on a global scale.
With Ritesh Agarwal doubling down on his vision, OYO is not just expanding—it’s rewriting the rules of hospitality. Whether it’s transforming iconic brands like Motel 6 in the US or continuously delivering profit growth, OYO is setting new benchmarks for innovation and success in the travel and hospitality industry.