Ritesh Agarwal Raises $175 Million For Hospitality Unicorn OYO At Lower $2.37 Billion Valuation

Hospitality unicorn OYO has raised $175 million in a down round led by founder Ritesh Agarwal’s Singapore-based investment firm Patient Capital. Existing investors such as J&A Partners and ASK Financial Holdings also participated in the round which values OYO at $2.37 billion, lower than its peak valuation of $10 billion in 2019.

Patient Capital infused most funds of $83 million in the round. J&A Partners and ASK Financial Holdings invested $12 million and $1.4 million respectively. Top venture debt firm InCred had recently poured in $41 million as part of this series.

The latest funding follows OYO withdrawing its initial public offering plans earlier this year. Founded in 2012, OYO operates in 35 countries providing affordable accommodations to travelers through its platform. The company claims over 40 products and solutions to streamline hospitality services.

OYO reported its first full-year profits of $10 million for fiscal year 2024 with continued positive EBITDA for the eighth straight quarter. Cash reserves were noted at around $100 million at the end of March 2024.

Under Agarwal’s leadership, OYO looks to strengthen its positioning and scale globally with this down round support. Investors continue backing the firm’s potential despite current market headwinds.