Indian hospitality startup, Oyo said it is cutting the equity stakes of Japan’s SoftBank Corp.
According to a report by Reuters, Oyo’s founder, Ritesh Agarwal is increasing his stakes in the company by up to 30% from about 10%.
To get this done, he will execute a share buyback program of up to $ 2 billion in transaction value.
According to the company’s shareholding disclosure, SoftBank holds 45% stakes in Oyo. As part of the agreement, other shareholders of Oyo including Lightspeed Venture Partners and Sequoia India are selling parts of their stakes.
The share buyback agreement will be funded by institutional lending and financial partners.
The company said the latest raising will see its valuation increase to $10 billion.