Lightspeed, Sequoia rake in $400m profit from OYO share sale
12/23/2019|5:43:55 PM|Deal Street Asia

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 the partial sale of their shares in Oyo Hotels & Homes (OYO) to its founder Ritesh Agarwal. 

Agarwal made headlines in July with plans to spend $2 billion to raise his stake in the company to 30% from about 10%. SoftBank is currently the largest shareholder in OYO with about a 48 percent stake. 

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. 

Lightspeed Venture Partners, which held about a 13% stake in OYO, partially sold its stake for roughly $850 million while Sequoia Capital raked in $450 million, overall. The Silicon Valley venture capital, which has infused about $27 million into the company so far across different funding rounds, held a 10.24 percent stake in OYO. 

According to a report in The Economic Times, Lightspeed made a profit of about $250 million from the sale while executives at Sequoia have taken home around $150 million. 

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