An investment consortium backed by Oyo founder Ritesh Agarwal is proposing to inject an additional $65.1 million into the Indian hospitality startup, according to a notice to shareholders seen by TechCrunch.
The investment, through Redsprig Innovation Partners, values the SoftBank-backed company at $3.8 billion, according to terms shared in a notice to shareholders.
This represents a 38% premium to Oyo's recent June valuation of $2.3 billion, but the implied price is still well below the startup's 2019 peak of $10 billion. Oyo has raised more than $3.4 billion in equity and debt since its inception, according to Tracxn.
Redsprig invested about $100 million in a June funding round, while Oyo raised $175 million.
It remains unclear who else is backing Redsprig and whether Mr. Agarwal has paid off the $2 billion loan he took in 2019 to buy back Oyo shares from Peak XV and Lightspeed India.
The hospitality group is preparing to file for a third initial public offering within two months, according to people familiar with the matter.