At a time when exits remain a rare phenomenon in the startup space, Lightspeed Venture Partners and Sequoia Capital have collectively mopped up profits worth $400-500 million from partial sale of their shares in Oyo Hotels & Homes (OYO) to its founder Ritesh Agarwal.
RA Hospitality, a special purpose vehicle domiciled in the Cayman Islands, recently bought shares worth $1.3 billion in OYO from these two investors on behalf of Agarwal. Japanese financial institutions, including Nomura Holdings and Mizuho, had extended a debt of about $2-2.2 billion to Agarwal to fund the purchase.
