OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
The hospitality sector is set to witness another significant milestone as OYO, one of the leading hotel chains in the world, plans to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025. This comes as a surprise, given the company’s tumultuous journey to the public markets, with two previous attempts being withdrawn. However, OYO’s impressive financial performance, particularly its record profit of ₹623 crore in FY25, marks a significant turning point in its journey towards becoming a publicly listed company.
In its latest financial year, OYO’s net profit saw a staggering 172% year-on-year increase, a testament to the company’s resilience and adaptability in the face of a rapidly evolving market. The company’s revenue also saw a significant jump, growing by 43% to reach ₹4,161 crore. These numbers are expected to play a crucial role in OYO’s upcoming IPO, as the company looks to raise funds to fuel its expansion plans and further strengthen its market position.
OYO’s decision to file its IPO papers with SEBI is a significant development, especially considering the company’s previous failed attempts at going public. The first attempt, which was announced in 2020, was withdrawn due to market volatility and regulatory hurdles. The second attempt, which was announced in 2022, was also called off due to concerns over the company’s valuation and business model.
However, this time around, OYO seems more confident than ever. The company is targeting a valuation of $6-7 billion, a significant increase from its previous valuations. This suggests that OYO is looking to raise a substantial amount of funds to fuel its growth plans, which include expanding its presence in existing markets and entering new ones.
One of the key factors contributing to OYO’s confidence in its IPO plans is its recent victory in the Delhi High Court. The court recently ruled in OYO’s favour in its dispute with Zostel, dismissing the latter’s 7% equity claim. This ruling has significant implications for OYO’s financials, as it clears the way for the company to maintain its majority stake in its subsidiary, OYO Technology and Solutions.
The Zostel dispute has been a major overhang on OYO’s stock, and this ruling is expected to have a positive impact on the company’s valuation. The dispute was a major source of concern for investors, who were worried about the potential impact on OYO’s financials and business model. With this ruling behind it, OYO can now focus on its growth plans and IPO preparations without the distraction of a potentially costly and time-consuming dispute.
OYO’s decision to file its IPO papers with SEBI is also a significant development for the Indian hospitality sector. The company’s success in going public will set a precedent for other hospitality companies, which are looking to raise funds and expand their presence in the market.
In recent years, the Indian hospitality sector has witnessed significant growth, driven by the increasing popularity of travel and the rise of online booking platforms. OYO has been at the forefront of this growth, with its innovative business model and aggressive expansion plans helping it to establish a strong presence in the market.
OYO’s IPO is likely to be one of the most highly anticipated events in the Indian startup ecosystem in 2025. The company’s impressive financial performance, combined with its recent victory in the Zostel dispute, makes it an attractive proposition for investors. With a valuation of $6-7 billion, OYO’s IPO is expected to be one of the largest in the Indian startup ecosystem, and it will be closely watched by investors and industry experts alike.
In conclusion, OYO’s decision to file its IPO papers with SEBI is a significant development for the Indian hospitality sector. The company’s impressive financial performance, combined with its recent victory in the Zostel dispute, makes it an attractive proposition for investors. As OYO prepares to go public, it will be interesting to see how the company’s IPO plays out, and what implications it will have for the Indian startup ecosystem.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
