Oyo, the Indian hospitality startup, is seeking a new investment at a valuation of $3.8 billion. This represents a 38% premium over the company’s recent $2.3 billion valuation in June, but still significantly lower than its 2019 peak of $10 billion.
The investment is being proposed through Redsprig Innovation Partners, an investment vehicle backed by Oyo’s founder, Ritesh Agarwal. Redsprig had previously invested around $100 million in Oyo’s $175 million funding round in June.
The proposed $65.1 million investment would value the SoftBank-backed company at $3.8 billion. Oyo has raised over $3.4 billion in equity and debt since its inception, according to data from Tracxn.
It remains unclear who else is backing Redsprig and whether Agarwal has settled the $2 billion loan he took in 2019 to repurchase Oyo shares from Peak XV and Lightspeed India.
The hospitality group is also preparing to file for an initial public offering (IPO) for the third time within the next two months, according to a person familiar with the matter.
Despite the ongoing challenges, Oyo’s founder is seeking to secure new investment and move forward with its IPO plans, as the company aims to regain its footing in the competitive Indian hospitality market.
