OYO, the travel tech giant founded by Ritesh Agarwal, has achieved another significant milestone with Nuvama Wealth and Investment Limited acquiring shares worth ₹100 crore in its parent company, Oravel Stays Limited. The transaction, conducted at ₹53 per share in the secondary market, values OYO at approximately USD 4.6 billion. This investment, made on behalf of Nuvama’s investors, including family offices, underscores growing confidence in OYO’s growth potential.
The shares purchased originated from early investors, providing them with partial exits while creating opportunities for potential strategic investors. Furthermore, ongoing discussions with other stakeholders, including Incred, hint at additional secondary market transactions, with anticipated price ranges between ₹53-₹60 per share. If realized, these transactions could elevate OYO’s valuation to USD 5.2 billion, marking a step toward recovery from its peak valuation of USD 10 billion.
OYO’s recent performance showcases a strong turnaround, with the company reporting a net profit of ₹132 crore in Q1 FY 2025, a significant improvement from the ₹108 crore loss in the same period last year. The company’s strategic expansion efforts are also gaining traction. The acquisition of G6 Hospitality, operator of Motel 6 and Studio 6 brands, for USD 525 million is a pivotal move to strengthen OYO’s presence in the U.S. market. Similarly, its acquisition of Paris-based CheckMyGuest for USD 27 million underscores its ambition to expand its global footprint.
These advancements have been bolstered by Moody’s Ratings upgrading Oravel Stays Limited’s corporate family rating (CFR) to B2 from B3, reflecting improved financial stability and a stable outlook.
As OYO continues its recovery and global expansion, these milestones highlight the company’s resilience and its renewed focus on growth and profitability, setting the stage for a promising future in the travel tech sector.
