Ritesh Agarwal is buying an additional Rs 550 crore worth of Oyo shares at a price of Rs 42.60 per share, a 45% premium over his last purchase in August 2024. This move will raise his stake in the company from 30% to 32%,reflecting strong financial performance and a strategic growth trajectory, as per The Economic Times (ET) report.
Recent Funding Round
Oyo’s most recent funding round raised $175 million, with Agarwal contributing $100 million. Other investors such as InCred Wealth, J&A Partners and investor Ashish Kacholia.
Strategic Acquisitions
The company’s growth is supported by strategic acquisitions, including the recent $525 million purchase of G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate in an all-cash transaction.
Impressive Financial Performance
Oyo posted a net profit of Rs 158 crore for Q2 of FY2025, up from Rs 132 crore in Q1. Its total net profit for the first half of FY2025 stood at Rs 291 crore, a significant turnaround from a Rs 91 crore loss in the same period last year.
Global Expansion Driving Success
Agarwal credits Oyo’s "strong performance" to its successful expansion across key markets, including India, Southeast Asia, the U.S., and Europe. Oyo's revenue for Q2 FY2025 rose to Rs 1,578 crore, compared to Rs 1,413 crore in Q1,
Future Projections
In an August townhall, Agarwal forecasted that Oyo’s profit after tax will surge to Rs 700 crore in FY2025, more than triple the figure for FY2024.
The Economic Times also reported that Oyo did not respond to queries regarding the details of the share issuance by the time of publication. Nevertheless, analysts see Agarwal’s increased investment as a strong endorsement of the company’s future growth prospects, bolstered by its ongoing global expansion and profitability.
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