[bctt tweet=”India-based hospitality unicorn, OYO, made the news after it announced it was moving into the coworking industry and after raising several million dollars from different funding rounds.” username=”allwork_space”] Most recently, the Wall Street Journal reported that the company will be repriced far above its prior worth, after an impending $2 billion transaction.
Ritesh Agarwal, OYO Chief Executive, is buying part of the shareholdings of Sequoia Capital and Lightspeed Venture Partners investors. OYO’s growth rates are expected to be very high, especially considering that it has highly-valued companies interested in putting money into it. However, it is likely that OYO is unprofitable as growth and build out often lead to sharp deficits.
The transaction, which gives OYO a $10 billion valuation, takes it to the decacorn range. What’s caught the eye of many experts is that OYO’s founder is taking back shares in his company while WeWork’s co-founder, Adam Neumann is reducing his exposure in the We Company. Agarwal’s interest in getting more control of his company paints a confident picture for OYO.