Tripling his stake in hospitality firm OYO, founder Ritesh Agarwal on Friday has signed a deal to buy back shares worth USD 2 billion (nearly Rs 13,770 crore) from early investors through his Cayman islands-registered entity, RA Hospitality Holdings, according to PTI.
As per sources in know of the matter, after the entire process is completed, Agarwal's stake in the company will rise from the current 9-10 percent to around 30 percent which would take the valuation of the company to around USD 10 billion.
"As an entrepreneur and on behalf of the company's management, I am thankful to have been given the opportunity to rededicate ourselves to the company's mission of building the world's most loved hospitality brand that is focused on bringing a better lifestyle for the common man," Agarwal said.
Lightspeed Venture Partners and Sequoia India, OYO's early supporters have agreed to sell part of their holdings in order to help the founder increase his stake while remaining invested significantly in the company's long-term mission, OYO said in a statement.
Commenting on the association with OYO, Lightspeed India Partners Advisors Partner Bejul Somaia said,"as the company's first institutional investor, Lightspeed is fortunate to have been part of OYO's journey from a fledgling startup in India to a transformative company in the hospitality industry globally" adding that Lightspeed remains committed to supporting Ritesh and the OYO team as the company embarks on its next phase of growth globally.
Meanwhile, Sequoia Capital India Advisors Managing Director Mohit Bhatnagar said,"it has been five years since Sequoia India first partnered with Ritesh and his team....We remain committed to supporting this world-class management team as they continue to create living spaces across the world".
The company has attracted some of the world's leading investors, including Airbnb, SoftBank Vision Fund, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India and Hero Enterprise, the statement said. The company is well placed to achieve exponential growth and the capital received through forthcoming primary round will help boost OYO's expansion plan in India, the US, China, the UK, the EU, and Southeast Asia markets, it added.
"We have confidence in Ritesh's vision for OYO and how the team has come together to build a truly global brand from India. It has been an exciting journey so far and we hope to achieve many more milestones together in the time to come," SoftBank Vision Fund Managing Partner Munish Varma said.
Founded in 2013, OYO Hotels & Homes' current portfolio combines fully operated real estate comprising more than 23,000 hotels and 46,000 vacation homes.
(With PTI inputs)