OYO founder Ritesh Agarwal to buy back shares from early investors for $2 billion

By: |
Published: July 19, 2019 3:22:10 PM

"Company's founder and CEO Ritesh Agarwal, through RA Hospitality Holdings (Cayman), has signed USD 2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners," it added.

OYO, OYO founder Ritesh Agarwal, RA Hospitality Holdings, Cayman islands, latest news on OYO roomsAs per sources in know of the matter, after the entire process is completed, Agarwal’s stake in the company will rise from the current 9-10 per cent to around 30 per cent.

Hospitality firm OYO Friday said its founder Ritesh Agarwal has signed a deal to buy back shares worth USD 2 billion (nearly Rs 13,770 crore) from early investors through his Cayman islands-registered entity, RA Hospitality Holdings. Lightspeed Venture Partners and Sequoia India, OYO’s early supporters, are selling part of their holdings in order to help the founder increase his stake while remaining invested significantly in the company’s long-term mission, OYO said in a statement.

“Company’s founder and CEO Ritesh Agarwal, through RA Hospitality Holdings (Cayman), has signed USD 2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners,” it added.

Also read: Reliance Jio pips Bharti Airtel to become India’s 2nd largest mobile operator in May, Highlights of TRAI data

As per sources in know of the matter, after the entire process is completed, Agarwal’s stake in the company will rise from the current 9-10 per cent to around 30 per cent. This would take the valuation of the company to around USD 10 billion.

“As an entrepreneur and on behalf of the company’s management, I am thankful to have been given the opportunity to rededicate ourselves to the company’s mission of building the world’s most loved hospitality brand that is focused on bringing a better lifestyle for the common man,” Agarwal said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.