Companies

Ritesh Agarwal to triple stake in Oyo to 30% through re-purchase of shares

Our Bureau New Delhi | Updated on July 19, 2019 Published on July 19, 2019

File Photo of Ritesh Agarwal, founder and chief executive officer of OYO Hotels.   -  Bloomberg

Oyo Hotels founder Ritesh Agarwal is increasing his stake in the international budget hotel chain through a $2-billion deal involving purchase of shares from early investors in the company.

This share purchase will be done through RA Hospitality Holdings (Cayman), a Cayman Islands-based entity promoted by Agarwal.

The latest deal could see Ritesh’s holding in Oyo go up to 30 per cent from the current 10 per cent, sources said.

Lightspeed Venture Partners and Sequoia India, who are Oyo’s early supporters, are selling part of their holdings in this transaction in order to help Agarwal increase his stake and commitment.

Both Lightspeed and Sequoia will remain invested significantly in the company’s long-term mission, said a statement issued by Oyo.

“Our endeavour continues to be to become the most loved hospitality brand in the coming years. I am deeply humbled and delighted to have gotten the support of all our investors, the board and above all the institutionalised financial partners that have provided the necessary financial support towards realizing this vision. Needless to say, the deal remains subject to shareholder and regulatory approvals,” said Agarwal.

Published on July 19, 2019
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