Ritesh Agarwal, the CEO of the Indian multi-national hospitality chain of leased & franchised hotels, homes, and living spaces – OYO, is reported to be seeking new investment at USD 3.8 billion valuation.
Read more about the business update below.
Ritesh Agarwal Seeking New Investment at USD 3.8 Billion Valuation
It has been reported that OYO CEO Ritesh Agarwal is seeking a new investment at USD 3.8 billion valuation as an investment company backed by him has shared to provide USD 65.1 million to the company. This investment that is coming from Redsprig Innovation Partners would bring the Softbank funded company to this valuation of USD 3.8 billion. This is as per the notice sent to shareholders (received via TechCrunch). It can thus be understood that OYO CEO seems to be doubling down the growth of the company despite the ongoing challenges and adversities the industry is facing.
With respect to the recent valuation of OYO (USD 2.3 billion), the aimed USD 3.8 billion valuation is a 38% increase. Even if this is the case, it is still below the 10 billion peak valuation of the company, since its inception in 2019. As per reports (from Tracxn), it should also be noted that OYO so far has acquired USD 3.4 billion in equity and debt over the past few years. Also, there is still no updates concerning the 2 billion loan settlement which was taken to repurchase shares from Lightspeed India and Peak XV.
In related news, OYO is also said to be in the preparation to file for an IPO, its third attempt in two months. Let’s wait and see whether luck will favor OYO this time or not.
