Ritesh Agarwal, the founder and CEO of Oyo, is set to bolster his ownership in the company by acquiring additional shares worth ₹550 crore. As per recent filings reviewed by Economic Times, thew purchase will be made at ₹42.60 per share. This marks a 45% increase in value compared to his previous acquisition in August 2024, showcasing his confidence in Oyo’s growth trajectory.  

 Leading Investor in Recent Funding Rounds  
Agarwal has been a key participant in Oyo’s funding activities. In the last investment round, which raised $175 million, he contributed $100 million. Other participants included prominent family offices and private investors such as InCred Wealth, J&A Partners (the family office of Mankind Pharma promoters), ASK Financial Holdings, and seasoned investor Ashish Kacholia.  

 Ownership Stake Rises to 32%  
With this new acquisition, Agarwal’s equity stake in Oyo will rise from 30% to 32%. The purpose of this share issuance is reportedly tied to supporting Oyo’s ambitious global expansion plans, which include potential acquisitions and scaling its business strategy across international markets.  

 Strategic Acquisition of G6 Hospitality  
In a significant move, Oyo recently acquired G6 Hospitality, a leading economy lodging franchisor and the parent company of Motel 6 and Studio 6 brands. The acquisition, valued at $525 million, was executed as an all-cash transaction with Blackstone Real Estate. This marks a major milestone in Oyo’s expansion into the economy lodging segment.  

 Robust Financial Performance in FY25  
Oyo has demonstrated remarkable financial growth this fiscal year. The company posted a net profit of ₹158 crore in Q2 FY25, building on its ₹132 crore profit from Q1. This brings the cumulative profit for the first half of FY25 to ₹291 crore, a significant turnaround from the ₹91 crore net loss recorded during the same period last year.  

 Vision for FY25: Triple PAT Growth  
During an internal town hall in August, Agarwal projected a threefold increase in profit after tax (PAT) for FY25, targeting ₹700 crore compared to FY24. He attributed this robust outlook to Oyo’s strategic expansion in key regions, particularly India, Southeast Asia, and the United States, coupled with the growing footprint of Oyo-serviced properties worldwide. Investments and partnerships in Europe have further strengthened the company’s position.  

 Revenue Growth Momentum  
Oyo’s revenue surged to ₹1,578 crore in Q2 FY25, up from ₹1,413 crore in Q1. This upward trend reflects the company’s ability to scale operations and enhance profitability through diversified market strategies and efficient resource utilization.  

 A Profitable FY24: A Historic Milestone  

For the first time in its history, Oyo achieved a net profit of ₹229 crore in FY24, as per its annual report. This marked a turning point for the company, setting the stage for continued growth and profitability in the years ahead.  

Oyo’s achievements, coupled with Agarwal’s increased investment, underscore the company’s potential to redefine the global hospitality landscape while solidifying its financial foundation.