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Oyo raises $65 Mn from Ritesh Agarwal’s Redsprig Innovation

EntrackrEntrackr · 6m ago
Oyo raises $65 Mn from Ritesh Agarwal’s Redsprig Innovation
Medial

Oyo raises $65 Mn from Ritesh Agarwal’s Redsprig Innovation Hospitality major Oyo has raised Rs 550 crore (approximately $65 million) from Redsprig Innovation Partners, an affiliate entity of the company’s founder Ritesh Agarwal. The board at Oyo has passed a special resolution to issue 12,91,07,982 equity shares at an issue price of Rs 42.6 each to raise Rs 550 crore or $65 million, its regulatory filing accessed from the Registrar of Companies shows. After the recent funding injection, the company's valuation rose to $3.79 billion, reflecting a 59.2% increase from Oyo's previous Series G round, when the firm was valued at $2.38 billion. As per the filings, the company plans to use these funds for growth, supporting global expansion (including acquisitions), strengthening business strategies, and other corporate initiatives. The funding will also result in a 1.728% dilution of the company's total stake. This is the second major capital infusion by Agarwal in Oyo. In August 2024, he led a $175 million round through his Singapore-based fund, Patient Capital. Last month, a CNBC TV18 report suggested that Nuvama Wealth & Investment Limited (formerly Edelweiss Securities) purchased shares worth Rs 100 crore in Oyo’s parent Oravel Stays Limited. During FY24, IPO-bound Oyo posted a flat scale which stood at Rs 5,389 crore, as compared to Rs 5,464 crore in FY23. Despite the stagnant revenue, the company managed to control its expenditure by 16% which resulted in Oyo posting a net profit after tax (PAT) of Rs 230 crore in the last fiscal (FY24). In May, the Gurugram-based company withdrew its draft papers (DRHP) for the second time due to unfavorable conditions. The firm also said that it will refile the IPO papers after concluding a large funding round, which is about to close after the latest fundraises.

Oyo re-enters food biz with Townhouse Cafe QSR chain

EntrackrEntrackr · 2m ago
Oyo re-enters food biz with Townhouse Cafe QSR chain
Medial

Oyo re-enters food biz with Townhouse Cafe QSR chain Hospitality major Oyo has forayed into the quick-service restaurant (QSR) space with the launch of its in-house brand, Townhouse Cafe. These cafes will be rolled out across company-serviced hotels (Townhouse by Oyo). Oyo has piloted the model since January 2025, covering 100 hotels across India. Over the coming months, it plans to scale this up in phases, targeting an ambitious 1,500 hotels, as per the company’s press release. Guests can place food orders through Oyo’s app as well as partner OTAs. In addition to in-house kitchens, the company is rolling out QSR carts and lobby stores under the Townhouse Cafe brand to offer ready-to-eat meals. According to the release, OYO is building a network of food and beverage experts across Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow to support its food service operations. While Oyo is yet to file its full FY25 financials, the IPO-bound company reported revenue of Rs 5,389 crore in FY24, slightly down from Rs 5,464 crore in FY23. However, a 16% reduction in expenses helped it post a net profit after tax (PAT) of Rs 230 crore for the year. The QSR venture seems to be part of Oyo’s broader push to boost revenue through allied services. This isn’t the company’s first foray into food — it launched a cloud kitchen business in 2019 but exited during the pandemic. While food operations are a natural extension of the hotel business, they require a distinct skill set and dedicated teams. Oyo likely gained valuable insights from its initial attempt and now appears better prepared to scale its food business in a more sustainable and strategic manner.

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