 "Ritesh Agarwal, Oyo Founder and CEO")
Hospitality firm OYO on Friday said its founder Ritesh Agarwal has signed a deal to buy back shares worth $2 billion (nearly Rs 13,770 crore) from early investors through his Cayman islands-registered entity, RA Hospitality Holdings.
Lightspeed Venture Partners and Sequoia India, OYO's early supporters, are selling part of their holdings in order to help the founder increase his stake while remaining invested significantly in the company's long-term mission, OYO said in a statement.
"Company's founder and CEO Ritesh Agarwal, through RA Hospitality Holdings (Cayman), has signed $2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners," it added.
According to sources in know of the matter, after the entire process is completed, Agarwal's stake in the company will rise from the current 9-10 per cent to around 30 per cent. This would take the valuation of the company to around $10 billion.
"As an entrepreneur and on behalf of the company's management, I am thankful to have been given the opportunity to rededicate ourselves to the company's mission of building the world's most loved hospitality brand that is focused on bringing a better lifestyle for the common man," Agarwal said.
