Nuvama Wealth and Investment Limited has acquired shares worth ₹100 crore in its parent company, Oyo. This pushed Oyo’s valuation to nearly $4.6 billion, a huge increase from the valuation of ₹2.4 billion at which it was previously rated. Shares were bought at ₹53 through a secondary market transaction involving early investors, InCred Wealth and Huazhu Group Limited, earlier known as China Lodging.
Background of Oyo Valuation
Oyo was founded in 2012 by Ritesh Agarwal as a hospitality startup that expands rapidly across markets such as India, Europe, and Southeast Asia. More than 157,000 hotels and home storefronts have access to an extremely large range of products and solutions offered by the company.
Even though valuation has been growing lately, Oyo’s current worth is still just a fraction of its peak valuation of $10 billion that it achieved in its earlier growth phases before facing profitability and market conditions challenges.
Apart from the recent acquisition of Nuvama stakes, Agarwal has also been actively on an acquisition spree to raise his stakes in the firm. He had just last month decided to buy shares worth ₹550 crore at ₹44 a share and still believes in the future prospects of the Oyo company.
Recent Financial Performance
Oyo has given some good financial numbers in the recent past. During the second quarter of FY 2025, the net profit had been ₹158 crores, and during the first quarter, it had stood at ₹132 crores. The total net profit of Oyo till the half of the year FY25 has become ₹290 crore. Such an incredible turnaround is from the fact that a net loss of ₹91 crore was during the same period of last year. Revenue for the company has increased and is now at ₹1,578 crore in Q2 whereas it was ₹1,413 crore in Q1.
Ritesh Agarwal says Oyo’s finances are on the right trajectory. The company’s profit after tax would triple to ₹700 crore for FY25 from FY24. The reason behind this optimism is well placed considering the recent profitability milestones and acquisitions of Oyo.
Oyo’s acquisition strategy includes major acquisitions it is making to expand the company’s market presence. The company recently announced that it had acquired G6 Hospitality for a sum of $525 million. G6 operates budget hotel brands such as Motel 6 and Studio 6 in the United States. This acquisition is part of Oyo’s larger strategy to improve the portfolio and operational efficiencies across the offerings.
Oyo Valuation of $4.6 Billion
With a new investment by Nuvama Wealth, Oyo prepares itself for an initial public offering with growing investor confidence. Profits and strategic acquisition – The attention of potential buyers as well as investors has been drawn by this. Reports state that more investors are in consideration of the share price that floats between ₹53-60 and may even enhance the valuation of Oyo by as much as $5.2 billion.
In conclusion, Oyo’s current valuation of $4.6 billion is quite a recovery from the previous low but still lower than its peak. With improving financial metrics and strategic initiatives, such as acquisitions and increased stakeholder investments, Oyo appears poised for future growth in navigating the competitive landscape of the hospitality industry.
