A growing trend is emerging where Bollywood celebrities are diversifying their investment portfolios into high-growth startups. Notable actors like Madhuri Dixit, Amrita Rao, and producer Gauri Khan have recently acquired shares in the travel tech platform OYO. These investments came during OYO’s Series G funding round in August 2024, where the company raised over Rs 1,400 crore. While the company’s valuation has been increasing, it is still significantly below its peak valuation of USD 10 billion. This article explores the celebrity interest in OYO and the implications for the company's future.

Celebrity Interest in OYO's Growth

Gauri Khan's Investment in OYO
Producer Gauri Khan acquired 2.4 million shares of OYO during the Series G funding round in August 2024. This round raised over Rs 1,400 crore from a consortium of investors. While Khan’s team has not responded to PTI’s requests for comments, her significant investment adds to a growing trend of celebrities seeking opportunities in high-growth startups.

Other Bollywood Celebrities on Board
Madhuri Dixit, along with her husband Dr. Sriram Nene, and angel investor Dr. Ritesh Malik, also bought 2 million shares of OYO at an undisclosed valuation. Their involvement reflects a broader interest among Bollywood personalities in diversifying their financial portfolios by investing in promising tech companies.

Rising Trend of Celebrity Investments in Startups

Investment Strategy Shift
Bollywood stars, traditionally more inclined to invest in real estate or entertainment-related ventures, are increasingly eyeing high-growth startups. These investments are seen as an effort to secure substantial returns once these companies go public, capitalizing on the potential for rapid growth in sectors like travel tech.

Amrita Rao and Anmol Sood Join the Trend
Another prominent celebrity couple, Amrita Rao and Anmol Sood, a popular radio jockey, also joined the bandwagon, purchasing shares of OYO in the secondary market. Their decision further illustrates the changing landscape of celebrity investments and their expanding influence in the tech sector.

OYO's Growing Valuation and Future Prospects

Series G Funding and Share Purchases
OYO’s Series G funding round, which raised over Rs 1,400 crore, has contributed to the company’s increasing valuation. Despite this, the valuation stands at USD 4.6 billion, which is still a considerable drop from its peak of USD 10 billion. This decline highlights the volatility and uncertainty within the travel tech sector, despite its potential for growth.

Nuvama Wealth's Significant Purchase
Nuvama Wealth recently acquired shares worth Rs 100 crore in OYO at Rs 53 per share, further confirming investor interest in the platform. The deal, conducted in the secondary market, reflects a positive outlook for OYO's future as it prepares for a possible IPO.

OYO’s Journey: From Peak to Current Valuation

Valuation Fluctuations
OYO's valuation journey has seen significant fluctuations. Once valued at USD 10 billion at its peak, the company now stands at a much lower valuation of USD 4.6 billion. While the company has made strides in securing investments, it faces challenges as it works to regain its former valuation.

Looking Ahead: The IPO Prospects
OYO’s future hinges on its ability to scale efficiently and increase its valuation. With major investments from celebrities and large financial firms, the company is poised for potential future growth, especially as it prepares for an eventual public offering. The upcoming IPO could be a game-changer for both the company and its investors.

Conclusion: A New Era of Celebrity Investments

The influx of Bollywood celebrities into OYO signifies a broader trend where high-profile personalities are shifting their focus towards lucrative startup investments. This marks a new era of financial diversification, as celebrities increasingly look beyond traditional assets like real estate and entertainment. With a steadily growing valuation and continued interest from both individuals and institutions, OYO’s prospects look promising, albeit still facing challenges to reach its former valuation. Investors will be closely monitoring the company’s path as it prepares for a potential IPO and strives to secure its position in the travel tech sector.