BENGALURU: Hospitality chain Oyo’s founder Ritesh Agarwal has invested Rs 830 crore in the company’s latest funding round through Singapore-based entity Patient Capital. With this, the IPO bound firm has raised Rs 1,457 crore.
The first tranche of funding of Rs 416.85 crore was led by Incred Wealth in July 2024. An additional fund raise of Rs 1,047 crore, was approved by shareholders of the company on August 8 in an extraordinary general meeting (EGM).
The companies leading the round are InCred Wealth, which has invested `76 crore in addition to its first investment of Rs 416.85 crore, J&A Partners, the Mankind Pharma family office, investing Rs 120 crore, and ASK Rs 14 crore. The latest funding will see the firm’s valuation dipping to $2.4 billion from $10 billion in 2019. According to Tracxn, a data insight platform, Oyo’s valuation as on July 4, 2024, stood at $2.72 billion. But with the latest round, the valuation has fallen below.
Sources told this newspaper that the company will go ahead with the IPO only after a few more back-to-back quarters of profit, which the company feels is bound to happen.
Sources said Ritesh has invested to protect his ownership dilution in OYO as well as a signal of confidence in the company’s prospects. The investment is backed by Singapore-based family offices. After dilution in the Series G funding round, Ritesh Agarwal’s holdings will increase from 29.97% to 32.57% post this transaction.