Oyo founder seeks new investment at $3.8B valuation

An investment vehicle backed by Oyo founder Ritesh Agarwal has proposed injecting an additional $65.1 million into the Indian hospitality startup, according to shareholder notices reviewed. The investment, through Redsprig Innovation Partners, would value the SoftBank-backed company at $3.8 billion, according to terms shared in a shareholder notice.

That's up 38% from Oyo's most recent valuation of $2.3 billion in June, but the expected price is still well below the startup's high of $10 billion in 2019. Oyo has raised more than $3.4 billion in equity and debt since its founding, according to Tracxn. Redsprig has invested about $ 100 million in the June financing round, and OYO has raised $ 175 million.

Who is still supporting Redsprig and I don't know yet that it has resolved a $ 2 billion Agarwal loan. He took it in 2019 to buy OYO's actions from PIC XV and LightSpeed ​​India. The hotel group is preparing to file for an initial public offering (IPO) for the third time within two months, according to a source close to the matter.