Hospitality giant OYO raises Rs 550 crore from Ritesh Agarwal-led Redsprig Innovation

Hospitality giant OYO Rooms has secured Rs 550 crore (about $65 million) in funding from Redsprig Innovation Partners, an entity led by its founder Ritesh Agarwal.

Regulatory filings show that OYO’s board approved a special resolution to issue 12,91,07,982 equity shares at Rs 42.6 apiece, raising fresh capital that will help the company strengthen its operations and broaden its international reach.

Surge in valuation

Following this round, OYO’s valuation has climbed to $3.79 billion, marking a 59.2% increase from $2.38 billion in its previous Series G funding. The fresh capital will go toward fueling global expansion, boosting acquisition plans and refining overall strategies.

The new investment will dilute the company’s total stake by 1.728%, and it comes shortly after Agarwal led a $175 million funding through his Singapore-based fund Patient Capital in August 2024.

Financial performance

OYO's finances showed a slight dip in revenue from Rs 5,464 crore in FY23 to Rs 5,389 crore in FY24. However, tight cost controls helped the company reduce expenses by 16%, pushing its net profit after tax to Rs 230 crore in the same period.

Last month, reports indicated that Nuvama Wealth & Investment Limited (formerly Edelweiss Securities) had picked up shares worth Rs 100 crore in Oyo’s parent firm, Oravel Stays Limited.  

Earlier this year, the company withdrew its draft papers for an initial public offering for a second time, citing unfavourable market conditions. The company said it plans to refile its IPO documents once it concludes this large funding round.