Oyo investors look to sell stake at $3.9-billion valuation
Oyo, including Lightspeed Venture Partners, are in talks with a group of family offices to sell part of their stakes in the hospitality startup at a valuation of around $3.9 billion, people briefed on the matter said. Peak XV Partners, another early investor, recently sold some of its remaining 3% stake, clocking about $80-90 million in returns, they said.
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This adds to the over $1.4 billion that Lightspeed and Peak XV cumulatively made in 2019 by selling most of their holdings to founder Ritesh Agarwal. The latest stake sale will be at a premium of more than 60% to the Rs 1,457 crore funding round in August 2024 when top family offices invested in the now profitable hospitality startup backed by the SoftBank Group. To be sure, this is lower than Oyo’s peak valuation of over $9 billion in 2021.
Peak XV had made $500 million in exits from Oyo before the latest sale, said one of the persons cited.
The latest share sale was in two separately priced transactions, the person said.
Another person said the current discussion on further stake sales involves two wealth management firms that pool capital from high networth individuals (HNIs) and buy shares on their behalf.
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