In a significant secondary market transaction, Nuvama Wealth and Investment Limited has purchased shares worth Rs 100 crore in Oravel Stays Limited, the parent company of OYO. This acquisition, made on behalf of various family office investors, was executed at a price of Rs 53 per share, according to insider sources.

1. Valuation Pegged at $4.6 Billion 

The purchase price of Rs 53 per share places OYO’s valuation at approximately $4.6 billion. While this valuation indicates a positive growth trajectory for the hospitality unicorn, it remains significantly below the company’s peak valuation of $10 billion.

2. Early Investors Opt for Partial Exit 

Sources indicate that the shares acquired by Nuvama Wealth were sold by OYO's early-stage investors. This provides an opportunity for these investors to partially exit the company while simultaneously making room for new strategic investors on OYO’s capitalization table. A cap table is a detailed record of all securities and ownership interests in a company, including shares, convertible notes, and other equity instruments.

3. Additional Buyers in Negotiation 

Besides the Nuvama Wealth deal, discussions are ongoing with other prospective buyers such as Incred. These buyers are reportedly considering purchasing stakes in OYO at prices ranging from Rs 53 to Rs 60 per share. If finalized at the higher end, these transactions could elevate OYO’s valuation to $5.2 billion, showing a steady recovery in investor confidence.

4. A Profit-Making Quarter 

OYO recently achieved a significant milestone by reporting its first-quarter profit for the fiscal year 2025. Ritesh Agarwal, the founder and CEO of OYO, shared the provisional net profit figures during a town hall meeting with employees, marking a key moment in the company’s financial journey.

 5. A Promising Yet Cautious Recovery 

While OYO’s valuation is climbing steadily, it remains well below its historic high. Industry insiders suggest this recovery reflects renewed investor interest in the travel and hospitality sector, coupled with OYO’s efforts to improve profitability and sustain growth. As new stakeholders potentially join the cap table, OYO appears to be navigating a gradual resurgence.