Oravel Stays receives huge capital infusion from SVF and RA Hospitality

This firm has divided 15,325 compulsorily convertible cumulative preference shares to tSVF India Holdings and RA Hospitality, at $52,643.22 a share.

Oravel Stays, the parent company of hospitality chain Oyo Hotels & Homes, has received a capital infusion of about $807 million from two of its backers, SVF India Holdings and RA Hospitality, the Ritesh Agarwal-controlled investment entity, as part of its ongoing $1.5 billion funding round.

In regulatory filings with the Registrar of Companies, and accessed by company research platform Tofler, the Gurugram-headquartered company has allotted a total of 15,325 Series F compulsorily convertible cumulative preference shares (CCCPS) to the two entities, at a price of $52,643.22 per share.

SVF India Holdings Limited has invested about $507 million, while RA Hospitality Holdings has put in about $300 million. When contacted, an Oyo spokesperson confirmed the fund infusion:

“This is a key development for Oyo Hotels & Homes, and additional funds will help the business achieve its strategic objectives for 2020, which include accretive and sustainable growth, operational excellence and investment in corporate governance and training."

The capital infusion is part of Oyo’s larger ongoing $1.5 billion financing round, which ET reported on November 25.

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