Oyo Hotels and Homes’ founder and CEO Ritesh Agarwal will be investing US$2 billion, through the entity RA Hospitality Holdings (Cayman), to increase his stake in the startup he founded.
Agarwal will be buying shares from existing investors Lightspeed Venture Partners and Sequoia India, which will remain backers of the startup, the company said in a statement.
The deal is currently remains subject to shareholder and regulatory approvals.
Agarwal said in a statement: “It is a very exciting time for Oyo right now as we make great living spaces come alive across all corners of the world from Texas to Tokyo. Our endeavour continues to be to become the most loved hospitality brand in the coming years.”
Both Lightspeed India Partners Advisors and Sequoia Capital have voiced their support for the move, and have indicated they remain committed to supporting Agarwal and his company.
This year, the India-based company has seen a 4.4 times year-on-year growth in revenue in June 2019 (vs June 2018), with one million rooms under management across hotels and homes; with over 200,000 rooms in India.
Earlier this month, Oyo published a statement hailing itself the world’s third largest hotel chain by room count as of June 2019, where its portfolio comprises more than 23,000 hotels and 46,000 vacation homes.