• OYO has secured INR 550 crore (approximately $65 million) from Redsprig Innovation Partners, led by its founder Ritesh Agarwal.
• In November of the previous year, Inc42 reported that Agarwal was aiming to increase his ownership in the company.
• OYO intends to use the funds to accelerate growth, support global expansion efforts, including acquisitions, and refine its business strategies.

Hospitality giant OYO has secured INR 550 Cr (approximately $65 Mn) from Redsprig Innovation Partners, a venture capital firm led by its founder Ritesh Agarwal.

Redsprig Innovation, founded by Agarwal, had previously been reported in November 2024 to be looking to increase his stake in OYO through this fund infusion. OYO issued 12.91 crore equity shares at INR 42.6 each as part of this fundraising, according to filings with the Ministry of Corporate Affairs.

The company plans to utilize the raised capital to fuel growth, support its global expansion— including potential acquisitions— enhance business strategies, and undertake other corporate activities. This fresh equity issuance results in a 1.728% dilution of the company’s total stake.

In a separate move last month, Nuvama Wealth & Investment Limited (formerly Edelweiss Securities) purchased OYO shares worth INR 100 Cr for a consortium of family offices. According to sources, the company’s recent profitability has significantly increased market interest, attracting potential buyers.

OYO’s recent corporate performance has also led to an upgrade in its rating. Global rating agency Moody’s raised its corporate family rating for OYO to “B2” from “B3.”

Founded by Agarwal in 2012, OYO is a hospitality startup that offers over 40 integrated products and services to operators of more than 157,000 hotels and home storefronts across over 35 countries, including India, Europe, and Southeast Asia.

This latest round of funding is the second major capital infusion by Agarwal in the company. In August 2024, Agarwal’s Singapore-based fund, Patient Capital, led OYO’s $175 Mn funding round.

On the financial front, OYO posted a net profit of INR 229.5 Cr for the financial year 2023-24 (FY24), turning profitable after a loss of INR 1,286.5 Cr in the previous fiscal year. However, its operating revenue remained nearly flat, with revenue from operations at INR 5,388.7 Cr in FY24, down 1.3% from INR 5,463.9 Cr in FY23.

OYO continued its profitability streak into the current fiscal year, reporting a profit of INR 158 Cr in Q2 FY25 and INR 132 Cr in Q1 FY25.