Early investors in Oyo, including Lightspeed Venture Partners, are reportedly in discussions with family offices to sell part of their stakes in the hospitality startup. According to The Economic Times, the valuation for this potential sale is around $3.9 billion.
Recently, another early investor, Peak XV Partners, sold part of its remaining 3 per cent stake, earning approximately $80–90 million in returns. This follows the over $1.4 billion that Lightspeed and Peak XV made in 2019 when they sold most of their stakes to Oyo’s founder, Ritesh Agarwal.
The latest stake sale is set at a 60 per cent premium compared to the valuation during Oyo’s August 2024 funding round, where prominent family offices invested. However, this valuation is still lower than Oyo’s peak valuation of over $9 billion in 2021.
According to The Economic Times report, Peak XV has made over $500 million from Oyo exits to date, including this latest sale, which occurred in two transactions. Meanwhile, discussions are ongoing with two wealth management firms that pool investments from high-net-worth individuals (HNIs) for further stake sales.
For example, Mankind Pharma’s Ramesh and Rajeev Juneja invested in Oyo during the last funding round through InCred Wealth. Founder Ritesh Agarwal also participated in that round and plans to invest an additional Rs 550 crore. It is unclear how he is funding these investments.
A spokesperson for Oyo confirmed these developments, noting that Peak XV sold a small tranche of shares at a valuation close to $4 billion but retains a stake in the company. The spokesperson added that both Lightspeed and Peak XV remain optimistic about Oyo’s future, particularly its US acquisition of G6 Hospitality, which is expected to drive significant growth.
Oyo has attracted increased interest, driven by its improved financial performance and potential plans to reconsider an initial public offering (IPO) in the future. Although the company withdrew its IPO filing in May 2024 to prioritise private funding, it remains a lucrative exit option for early investors. Despite the recent stake sales, sources indicate that Lightspeed and other investors do not plan to fully divest their holdings, reflecting their confidence in Oyo’s long-term growth potential.
