Hospitality startup Oyo’s early investors, including Lightspeed Venture Partners, are reportedly in discussions with family offices to sell part of their stake at an estimated valuation of $3.9 billion. This valuation reflects a premium of over 60% compared to the ₹1,457 crore funding round in August 2024, during which leading family offices invested in the now profitable company.
In 2019, Lightspeed and Peak XV Partners sold most of their Oyo holdings to founder Ritesh Agarwal, collectively earning $1.4 billion. Peak XV has since sold a portion of its remaining 3% stake in Oyo, generating approximately $80–90 million returns.
Despite a decade of ups and downs, Oyo has proven to be one of the more successful exits for Peak XV and Lightspeed, which had initially invested approximately $25 million and $28 million, respectively.
Oyo acquired American lodging franchiser G6 Hospitality, parent of the Motel 6 and Studio 6 brands. It is also refinancing its $450 million term loan B facility to aid the G6 acquisition.
It reported its first-ever profit after tax (PAT) of approximately Rs 229 crore in FY24, followed by a profit of Rs 132 crore in Q1 FY25.
Mankind Pharma promoter brothers Ramesh and Rajeev Juneja invested in Oyo recently as part of an investment pooled through InCred Wealth. Founder Agarwal also participated in that round.
Oyo’s founder, Ritesh Agarwal, is strategically moving to increase his stake in the company, signalling confidence in its growth trajectory. This investment, valued at ₹550 crore, elevates Oyo’s valuation to approximately $3.8 billion and comes amidst a phase of profitability and global expansion. With strong financial performance, including its first-ever annual profit in FY24 and recent acquisitions bolstering its portfolio, Oyo appears well-positioned for continued success. This development underscores Agarwal’s long-term commitment to steering the company toward sustained growth and market leadership in the hospitality sector.
