Early backers of OYO, including Lightspeed Venture Partners, are in talks with a group of family offices to sell a part of their stake in the hospitality unicorn

The stake sale will reportedly value the Ritesh Agarwal-led company at $3.9 Bn, a 60% premium to the $2.4 Bn valuation OYO secured in its INR 1,457 Cr funding round in August last year

Peak XV Partners, one of OYO’s early investors, recently divested a portion of its remaining 3% stake in the IPO-bound company, logging returns of about $80-90 Mn

Early backers of OYO, including Lightspeed Venture Partners, are reportedly in talks with a group of family offices to sell a part of their stake in the hospitality unicorn with the secondary sale likely to value the IPO-bound company at $3.9 Bn.

This would be a 60% premium to the $2.4 Bn valuation OYO secured in its INR 1,457 Cr funding round in August last year, The Economic Times reported.

However, the latest stake sale will take place at a steep discount to its peak valuation of $9 Bn in 2021.

The deal would be part of a broader shuffle of OYO’s cap table ahead of its plans to tap the public markets this year.

Peak XV Partners, one of OYO’s early investors, recently divested a portion of its remaining 3% stake in the newly-turned profitable startup, which created a liquidity of about $80-90 Mn for the venture capital firm, as per the report.

Back in 2019, Lightspeed and Peak XV cumulatively raked in more than $1.4 Bn in returns on their investments in OYO by selling a majority of their stake to founder Ritesh Agarwal.

Last month, Nuvama Wealth and Investment Limited on behalf of some family offices bought shares worth INR 100 Cr in OYO at a valuation of $4.6 Bn.

The latest development comes on the heels of reports that OYO plans to refile its draft red herring prospectus (DRHP) for its initial public offering (IPO) with SEBI after raising $450 Mn through a sale of dollar bonds to refinance its Term Loan B.

Earlier, it was reported that OYO slashed the size of its IPO to $400-600 Mn from $1.2 Bn it planned previously.

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays, and more. The startup has raised about $4.5 Bn in funding to date and counts the likes of SoftBank Group and Microsoft among its backers.

It is pertinent to note that OYO turned profitable in the financial year 2023-24 (FY24). It posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year.

Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.

Early backers of OYO, including Lightspeed Venture Partners, are in talks with a group of family offices to sell a part of their stake in the hospitality unicorn

The stake sale will reportedly value the Ritesh Agarwal-led company at $3.9 Bn, a 60% premium to the $2.4 Bn valuation OYO secured in its INR 1,457 Cr funding round in August last year

Peak XV Partners, one of OYO’s early investors, recently divested a portion of its remaining 3% stake in the IPO-bound company, logging returns of about $80-90 Mn

Early backers of OYO, including Lightspeed Venture Partners, are reportedly in talks with a group of family offices to sell a part of their stake in the hospitality unicorn with the secondary sale likely to value the IPO-bound company at $3.9 Bn.

This would be a 60% premium to the $2.4 Bn valuation OYO secured in its INR 1,457 Cr funding round in August last year, The Economic Times reported.

However, the latest stake sale will take place at a steep discount to its peak valuation of $9 Bn in 2021.

The deal would be part of a broader shuffle of OYO’s cap table ahead of its plans to tap the public markets this year.

Peak XV Partners, one of OYO’s early investors, recently divested a portion of its remaining 3% stake in the newly-turned profitable startup, which created a liquidity of about $80-90 Mn for the venture capital firm, as per the report.

Back in 2019, Lightspeed and Peak XV cumulatively raked in more than $1.4 Bn in returns on their investments in OYO by selling a majority of their stake to founder Ritesh Agarwal.

Last month, Nuvama Wealth and Investment Limited on behalf of some family offices bought shares worth INR 100 Cr in OYO at a valuation of $4.6 Bn.

The latest development comes on the heels of reports that OYO plans to refile its draft red herring prospectus (DRHP) for its initial public offering (IPO) with SEBI after raising $450 Mn through a sale of dollar bonds to refinance its Term Loan B.

Earlier, it was reported that OYO slashed the size of its IPO to $400-600 Mn from $1.2 Bn it planned previously.

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays, and more. The startup has raised about $4.5 Bn in funding to date and counts the likes of SoftBank Group and Microsoft among its backers.

It is pertinent to note that OYO turned profitable in the financial year 2023-24 (FY24). It posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year.

Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.