The founder of Oyo is seeking new investment worth $3.8 billion

Oyo founder Ritesh Agarwal’s investment vehicle has proposed to inject an additional $65.1 million into the hotel startup, according to shareholder notices reviewed by TechCrunch.

The investment, by Redsprig Innovation Partners, will value the SoftBank-backed company at $3.8 billion, according to terms shared in the extraordinary general meeting notice.

While this represents a 38% premium to Oyo’s latest valuation of $2.3 billion – where it earned $175 million – the stated value remains below 2019’s peak of $10 billion. (Oyo has raised more than $3.4 billion in equity and debt since its inception, according to Tracxn.)

Redsprig has invested approximately $100 million in a recently completed $175 million funding round.

It is not clear who backed Redsprig and whether Agarwal has repaid the $2 billion loan he took out in 2019 to buy back Oyo’s stake in Peak XV and Lightspeed India.

The travel group is preparing to submit regulatory documents – for the third time – to the public for the first time within two months, according to a person familiar with the matter.