The investment vehicle backed by Oyo founder Ritesh Agarwal has proposed to invest an additional $65.1 million in the hotel startup in India, according to a shareholder notice reviewed by TechCrunch.
The investment through Redsprig Innovation Partners will value the SoftBank-backed company at $3.8 billion, according to terms notified to shareholders.
While this represents a 38% premium over Oyo’s recent June valuation of $2.3 billion, the implied price tag remains well below the startup’s 2019 high of $10 billion. According to Tracxn, Oyo has raised more than $3.4 billion in equity and debt since its founding.
Redsprig invested about $100 million in a funding round in June, while Oyo raised $175 million.
It is unclear who backs Redsprig and whether Agarwal has settled the $2 billion loan it took out in 2019 to repurchase Oyo shares in Peak XV and Lightspeed India.
The hotel group is preparing to file for its third initial public offering (IPO) within two months, according to people familiar with the matter.
