Nuvama Wealth and Investment has acquired shares worth Rs 100 crore in Oravel Stays, the parent company of Oyo, through a secondary transaction at Rs 53 per share that valued the travel-tech unicorn at $4.6 billion, according to sources.
The shares were sold by InCred Wealth and China’s Huazhu Group (formerly known as China Lodging), they added. Although the new valuation is higher than its last known valuation of $2.4 billion, it is still significantly lower than its peak valuation of $10 billion.
Oyo is also in advanced discussions with other potential buyers at prices ranging between Rs 53-60 per share, which translates to a valuation of upto $5.2 billion. These shares are being offered by Oyo’s early investors, to offer partial exits to existing investors and bring in new strategic investors to the company’s cap table.
Also ReadOYO-owned Innov8 clocks Rs 62 crore net profit in FY24
The total secondary share purchase is expected to reach about Rs 300 crore, sources said. Last month, the company had announced that its founder Ritesh Agarwal was in the process of buying shares worth Rs 550 crore at nearly Rs 44 per share.
Earlier in August, Oyo raised nearly Rs 1,040 crore in a Series G funding round from investors such as J&A Partners Business, InCred Capital, and ASK Group, after raising Rs 417 crore in the same round earlier in the year.
Also ReadOYO-owned Innov8 clocks Rs 62 crore net profit in FY24
While Oyo is refinancing its $450 million Term Loan B facility to a long-term debt, it has borrowed another $375 million to help fund the acquisition of G6 Hospitality, the operator of legacy brands Motel 6 and Studio 6 in the US. The deal is valued at $525 million. The company has also acquired Paris-based CheckMyGuest for $27 million.
Oyo also turned profitable in the first quarter of this financial year, with a net profit of Rs 132 crore, compared to a loss of Rs 108 crore during the same quarter of the previous fiscal. It now expects its Ebitda to surge to nearly Rs 2,000 cr in FY26, banking on its expansion across key markets such as India, Southeast Asia, and the United States.
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