So, here I will be taking the example of a firm that had exited its stake by selling it to the founder.

With this exiting strategy, the example that strikes the mind is that of OYO Rooms. Oyo Rooms was
founded in the year 2013 by Ritesh Agarwal. It is a hospitality chain serving in the markets of Asia,
Europe, and the Americas. The company’s private investors are SoftBank Group, Lightspeed
Ventures Pvt. Ltd., Airbnb, Sequoia Capital, Didi Chuxing, Greenoaks Capital, and Hero Enterprise.

So, talking about the PE funds Lightspeed Ventures Partners and Sequoia Capitals, both exited the
company with very high returns. Since both the firms were investing in the growth phase of the
company and after the company has grown to a significant scale in the market and was to enter the
next life cycle of the company. Hence, pursuant to their strategy, both firms exited the company,
getting very higher returns.

Lightspeed Ventures Partners exited the company by bagging an amount equal to 50x the initial
investment. However, it has retained a 6.5% stake in the company.

CAGR = [(50x/x) ^(1/5)-1]*100= 118.67%

Sequoia Capitals on the other hand exited the company with an amount equal to 18x the initial
investment. They also retained 5.5% of the stakes in the company.

CAGR = [(18x/x) ^(1/5)-1]*100= 78.26%