Oyo Hotels founder to repurchase US$2bn in stock
Oyo Hotels & Homes founder, Ritesh Agarwal, will buy back $2 billion in shares in the company from investors.
Agarwal is buying part of the shareholdings of early investors Sequoia Capital and Lightspeed Venture Partners.
The buyback, which is still subject to shareholder and regulatory approvals, will be through a Cayman Islands company called RA Hospitality Holdings.
The deal will be financed by institutional banks and finance partners, the company said in a statement.
After rapid growth, Oyo currently claims to have one million rooms under management
Agarwal said: “It is a very exciting time for Oyo right now as we make great living spaces come alive across all corners of the world from Texas to Tokyo.
“Our endeavour continues to be to become the most loved hospitality brand in the coming years.
“I am deeply humbled and delighted to have gotten the support of all our investors, the board and above all the institutionalised financial partners that have provided the necessary financial support towards realising this vision.”
India-based Oyo currently operates more than 20,000 locations worldwide.
Munish Varma, managing partner at investor SoftBank Vision Fund, said: “We have confidence in Ritesh’s vision for Oyo and how the team has come together to build a truly global brand from India.
“It has been an exciting journey so far and we hope to achieve many more milestones together in the time to come.”