OYO Reportedly Considering SoftBank’s Sumer Juneja for Board Position

OYO’s parent company, Oravel Stays Ltd, is reportedly considering appointing Sumer Juneja, the managing partner and head of EMEA & India Investing at SoftBank Vision Fund, as a non-executive director on its board. Juneja’s LinkedIn profile reveals his nearly six-year tenure at SoftBank. Before joining SoftBank, he spent about four years as a board member at the foodtech company Swiggy. Additionally, Juneja has experience working with Norwest Venture Partners and Goldman Sachs.

Related: South Asia’s Biggest Hotel Chain OYO in Conversation to Raise $1 Billion

According to the report, the appointment requires approval from the shareholders, which will be requested at an extraordinary general meeting (EGM). Sumer is set to join Oravel Stays’ Board as a nominee director representing SoftBank. Additionally, sources mentioned that this move reflects SoftBank’s optimistic outlook on OYO, considering the company has recently achieved profitability.

OYO announced its first full year of profitability, posting a net profit of approximately INR 100 crore for FY24, according to founder and CEO Ritesh Agarwal. In a social media post on platform X, he highlighted that OYO achieved its eighth consecutive quarter of positive EBITDA in Q4 FY24. Agarwal also noted that the SoftBank-backed company’s cash reserves were around INR 1,000 crore by the year’s end.

Earlier in the year, OYO launched a joint venture with lead investor SoftBank under the luxury hotel brand ‘Sunday’. These properties have opened in Jaipur, Vadodara, and Chandigarh, with plans for expansion into additional cities.

SoftBank is demonstrating strong support for OYO and has shown a renewed interest in its potential. According to a source familiar with the situation, they aim to boost the company’s growth in international markets. Concurrently, the hospitality unicorn is securing $50 million (approximately INR 415 crore) from financial services provider InCred, intending to use the funds for global expansion, potentially including the acquisition of smaller businesses in the sector. Following the allocation, InCred will hold about a 2.11% stake in Ritesh Agarwal’s startup.

Oravel Stays Ltd, the parent company of OYO, is poised to appoint Sumer Juneja, a managing partner at SoftBank Vision Fund, to its board as a non-executive director. This move reflects SoftBank’s positive outlook on OYO, coinciding with the company’s milestone achievement of profitability and substantial cash reserves. OYO’s joint venture with SoftBank under the luxury hotel brand ‘Sunday’ and its strategic partnership with InCred, securing $50 million for global expansion, further demonstrate the company’s upward trajectory and strong investor support, positioning it for international growth and potential acquisitions.