Ritesh Agarwal, the founder of Oyo, is seeking new investment for the Indian hospitality startup. His investment vehicle, Redsprig Innovation Partners, is planning to inject $65.1 million into Oyo, valuing the company at $3.8 billion. This would be a 38% premium from Oyo’s previous valuation of $2.3 billion in June.
Despite the increase in valuation, Oyo’s current worth is still far below its peak of $10 billion in 2019. The company has raised over $3.4 billion in equity and debt since its establishment. Redsprig had previously invested $100 million in Oyo during the June funding round, where Oyo managed to raise $175 million.
It is unclear who else is backing Redsprig in this new investment round. Additionally, it is uncertain whether Agarwal has repaid the $2 billion loan he took in 2019 to buy back Oyo shares from Peak XV and Lightspeed India. The company is also gearing up to file for an initial public offering for the third time in the upcoming two months.
Oyo’s journey has been a rollercoaster ride, with significant fluctuations in its valuation over the years. Despite facing challenges, the company continues to attract investments and is optimistic about its future growth prospects. With the new investment from Redsprig, Oyo aims to strengthen its position in the hospitality industry and expand its services globally.
As Oyo prepares for its potential IPO, investors are closely watching the company’s performance and strategic moves. The hospitality startup has made a name for itself in the market, offering affordable accommodation options and innovative services to travelers worldwide. With the support of investors like Ritesh Agarwal and Redsprig Innovation Partners, Oyo is poised for further success in the competitive hospitality sector.
