OYO Founder Buying Back Stake In The Company
Ritesh Agarwal, founder and CEO of hospitality company OYO, will officially invest into the firm according to the Ministry of Corporate Affairs filings.
The filings revealed that the company allotted 13,169 equity shares at a value of just INR 1 and a premium of INR 3,753,434 per share to RA Hospitality Holdings, which were worth around $693 million.
After the transaction is completed, Agarwal is expected to hold 18.03% of the company, up from his previous 9.43% holding.
In October, OYO announced that in a Series F round, Agarwal’s RA Hospitality Holdings would infuse around $700 million as primary capital in the company, which would partially go towards expanding in the United States and strengthening its position in Europe.
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Later, reports revealed that Lightspeed Venture Partners and Sequoia Capital India had completed their transaction to sell a 15% stake in OYO to Agarwal for $1.5 billion. In turn, this deal will double the company’s valuation from $5 billion to $10 billion.
While it is expecting about $285.9 million in losses for 2020, OYO hopes to gain a profit of $45.2 million by 2022.
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