Deal with Oyo brings profit back for Lightspeed and Sequoia executives

December 24, 2019
Share this Post: 

The venture capital firms that share profits with Oyo, earn between $400-500 million.

In one of the largest cash distributions for venture capitalists in India, general partners (GPs) at Lightspeed Venture Partners and Sequoia Capital have collectively earned around $400-500 million as their share of the profits after the two funds part sold their shares in Oyo Hotels & Homes to its Founder Ritesh Agarwal.

While GPs at Lightspeed are expected to have mopped up $250 million, Sequoia executives are understood to have taken home around $150 million.

The windfall for the fund executives comes on the back of RA Hospitality, a special purpose vehicle domiciled in the Cayman Islands, recently buying Oyo shares worth $1.3 billion from these two venture firms on behalf of Agarwal. The stock buyback was an unprecedented move by the Indian entrepreneur giving him about 30% ownership in Oyo.

Lightspeed Venture Partners held about 13% stake in Oyo and partially sold its stake for roughly $850 million while Sequoia Capital raked in $450 million, overall.

Second to Flipkart Deal

“The money hit the bank recently and is one of the largest carried interests for GPs in India. For this kind of distribution among the top team you need at least $1 billion in exit,” said a person privy to the development.

GPs are the top-most investment professionals at a fund who actively manage and allocate assets across companies. Carried interest is defined as the profit share earned by GPs in an investment firm, after the fund’s sponsors, or Limited Partners (LPs), receive their share of gains once a fund exits a company following a merger, acquisition or in case of an IPO.

Read more here

Join us February 26-27 for the Property Portal Watch Conference Bangkok 2020.

Property Portal Watch Bangkok Conference, 2020

December 24, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Nils K
Ringier's Nils Körber on ArtificiaI Intelligence, Training the Machine, and Talking about Problems

"What would you do with one million interns?" The award for the best question at the PropTech and Portal Watch...

Read More
Untitled Design 13
As OnTheMarket Hits 15,000 Advertisers, Zoopla Fights Back with Big Agency Deal

The British property portal Zoopla has announced a new long-term listings deal with Dexters, one of London's top agencies with...

Read More
Untitled Design 12
LeBonCoin Suffers Data Leak and Boliga Comes Under Cyber Attack on Same Weekend

LeBonCoin, the leading French horizontal marketplace owned by Adevinta, has acknowledged that some of its users' personal information was exposed...

Read More
Number 2S Challenging Hero Image 2
Analysis: Can Zoopla, Realtor.com and Domain See Off Challengers and Close the Gap to Market Leaders?

Well-funded challenger portals have been generating a lot of headlines in the industry recently. CoStar has been explicit about its...

Read More

Editor's Pick