OYO REACHES $10 BILLION

Indian hotel company OYO now has a value of US$10 billion, following a $2 billion cash injection by its founder Ritesh Agarwal.

Agarwal, 25, founded OYO in 2013, is investing $700 million into the company as part of its new $1.5 billion fundraising round. Existing investors including Japan’s SoftBank will be putting in the rest.

The entrepreneur is also buying $1.3 billion of existing shares from aearly investors Lightspeed Venture Partners and Sequoia Capital, with support from banks and financial partners.

Ritesh Agarwal

These latest investments take Agarwal’s stake in OYO to 30 percent and brings the value of the company to $10 billion, making it India’s second-largest startup after digital payments company Paytm, valued at $15 billion.

“We truly believe that we will be able to build a truly global brand out of India, while ensuring that the business is run efficiently and with a clear path to profitability,” said Agarwal in a statement.