OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
The hospitality firm OYO is gearing up for its third attempt at an initial public offering (IPO) after reporting a record profit of ₹623 crore in FY25, marking a remarkable 172% year-on-year increase. The company is planning to file its IPO papers with the Securities and Exchange Board of India (SEBI) between August and September 2025, targeting a valuation of $6-7 billion.
This news comes after a significant development in one of OYO’s ongoing legal disputes. The Delhi High Court recently ruled in OYO’s favour, dismissing Zostel’s claim of 7% equity in the company. Zostel had been pursuing a long-standing dispute with OYO, claiming that it was entitled to a significant stake in the business. The court’s decision is a significant victory for OYO, allowing it to focus on its upcoming IPO.
OYO’s IPO is expected to be one of the largest in the Indian startup ecosystem, with the company looking to raise funds to fuel its growth plans. The company has been expanding rapidly, both in India and internationally, and has been investing heavily in technology and talent acquisition. The IPO proceeds will likely be used to support these efforts, as well as to strengthen OYO’s balance sheet.
The company’s financial performance has been impressive in recent years, with revenue growing rapidly and profitability increasing significantly. In FY25, OYO reported a net profit of ₹623 crore, up from just ₹226 crore in the previous year. The company’s revenue also increased by 35% year-on-year, driven by strong demand for its services and a growing presence in key markets.
OYO’s success can be attributed to its innovative business model, which has disrupted the traditional hospitality industry. The company has focused on providing affordable and convenient accommodation options to budget-conscious travelers, using technology to streamline operations and reduce costs. This has allowed OYO to offer competitive pricing and high-quality services, attracting a large and loyal customer base.
The company’s growth has also been driven by its international expansion, with OYO now present in over 80 countries around the world. The company has established partnerships with leading hotel chains and independent hotels, allowing it to offer a wide range of accommodation options to customers. This global footprint has enabled OYO to capitalize on the growing demand for affordable and convenient travel, and has positioned the company for long-term success.
OYO’s IPO is expected to be a significant milestone in the company’s history, providing a platform for its employees, investors, and customers to participate in its growth story. The company has been working closely with its investors and advisors to prepare for the IPO, and is confident that the offering will be well-received by the market.
In conclusion, OYO’s plans for a third IPO attempt are a testament to the company’s impressive financial performance and growth prospects. With a record profit in FY25 and a strong track record of innovation and expansion, OYO is well-positioned for long-term success. The company’s IPO is expected to be one of the largest and most anticipated in the Indian startup ecosystem, and will provide a platform for OYO to further accelerate its growth and expansion plans.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
