Oyo Valued at $4.6 Billion After Nuvama Wealth Acquires Rs 100 Crore Stake
Oyo's valuation has surged to $4.6 billion following the acquisition of shares worth Rs 100 crore by Nuvama Wealth and Investment Limited in Oravel Stays Ltd, Oyo's parent company. The shares were purchased at Rs 53 per share through a secondary transaction, as reported by bankers familiar with the matter.
Nuvama acquired these shares in collaboration with InCred Wealth and Huazhu Group Limited (formerly known as China Lodging). This recent investment underscores the company's growing valuation, although it remains significantly lower than the $10 billion peak valuation Oyo achieved in the past.
In a related development, Oyo's Founder, Ritesh Agarwal, announced last month his intention to buy shares worth Rs 550 crore at Rs 44 per share.
Oyo has also made headlines with its recent acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million in an all-cash deal.
Financially, Oyo reported a net profit of Rs 158 crore in the second quarter of the fiscal year 2025, following a profit of Rs 132 crore in the first quarter. This brings the company's total net profit for the first half of fiscal year 2025 to Rs 290 crore, a significant turnaround from a net loss of Rs 91 crore during the same period last year.
During an internal employee town hall in August, Agarwal projected that the company's profit after tax could triple to Rs 700 crore in fiscal year 2025 compared to fiscal year 2024. Additionally, Oyo's revenue rose to Rs 1,578 crore in the second quarter, up from Rs 1,413 crore in the first quarter.
Earlier this year, Oyo reported its first-ever profit after tax of Rs 229 crore for fiscal year 2024, according to the company's annual report.
