OYO Hotels & Homes announced that in a landmark move, Founder & CEO (Group), Ritesh Agarwal, through RA Hospitality Holdings (Cayman), has signed $2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners, subject to regulatory and shareholder approvals.
This year, the company has seen a 4.4x YOY growth in revenue in June 2019 (vs. June 2018), with 1 million rooms under management across hotels and homes; with over 200,000 rooms in India. The company’s strong growth, improved margins, superior improvements in customer experience led to this move, making it one of the first founder and executive-led management purchases in the technology and hospitality sector, globally.
Lightspeed Venture Partners, and Sequoia India, OYO’s early supporters, are selling part of their holdings in order to help the founder increase his stake and thereby commitment while remaining invested significantly in the company’s long-term mission.
Commenting on this development, Ritesh Agarwal, Founder & CEO (Group), OYO Hotels & Homes, said, “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. 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 endeavor 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 institutionalized 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.”
OYO Hotels has attracted some of the world’s leading investors, including Airbnb, SoftBank Vision Fund, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India, and Hero Enterprise.
Munish Varma, Managing Partner, SoftBank Vision Fund, said, “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.”
Bejul Somaia, Partner, Lightspeed India Partners Advisors, added, ‘’As the company’s first institutional investor, Lightspeed is fortunate to have been part of OYO’s journey from a fledgling start-up in India to a transformative company in the hospitality industry globally. We remain committed to supporting Ritesh and the OYO team as the company embarks on its next phase of growth globally.”
Mohit Bhatnagar, Managing Director, Sequoia Capital India Advisors, said, ‘It's been five years since Sequoia India first partnered with Ritesh and his team. Today our footprint stands at 1 million rooms across India, China, SE Asia, Europe and now the US. This is the kind of stuff start-ups and ventures investing dreams are made of. But make no mistake…OYO has been built on the back of an audacious & ambitious founder’s vision, and unrelenting hard work and sacrifices by thousands of OYOpreneurs across the globe. They are the true architects of this disruptive company. We remain committed to supporting this world-class management team as they continue to create living spaces across the world.’