OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
After a tumultuous journey, OYO, one of India’s most valuable startup unicorns, is gearing up to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) by September 2025. The hospitality firm is targeting a valuation of $6-7 billion, a significant increase from its previous attempts.
This development comes on the back of a remarkable profit performance in the fiscal year 2025, which saw OYO report a net profit of ₹623 crore. This represents a staggering 172% year-on-year increase, underscoring the company’s resilience and growth potential.
OYO’s IPO plans have been in the works for some time now. The company first filed its IPO papers with SEBI in 2020, but the process was put on hold due to the COVID-19 pandemic. In 2022, OYO attempted to go public again, but the plan was scrapped after the company decided to focus on its operations and growth strategy.
Despite these setbacks, OYO has continued to expand its footprint across the globe, strengthening its position as a leading player in the hospitality industry. The company has expanded its presence to over 80 countries, with a portfolio of over 1 million hotels and homes.
OYO’s latest financial performance has been a significant boost to its IPO plans. The company’s profit growth has been driven by a combination of factors, including increased revenue from its hotel and home rental businesses, as well as cost efficiencies achieved through its operational optimization initiatives.
The Delhi High Court’s recent ruling in OYO’s favour in its dispute with Zostel has also provided a significant fillip to the company’s IPO plans. Zostel had claimed 7% equity in OYO, but the court dismissed the claim, clearing the way for OYO to proceed with its IPO plans.
The IPO process is expected to be a complex and time-consuming one, involving several stages, including the filing of draft red herring prospectus (DRHP) with SEBI, public issue of shares, and listing on stock exchanges. However, OYO is well-prepared for the challenge, with a strong track record of growth and a robust financial performance.
OYO’s IPO plans are likely to be closely watched by investors and industry stakeholders. The company’s valuation, which is expected to be in the range of $6-7 billion, will be closely scrutinized, given the significant growth potential of the hospitality sector.
The Indian hospitality industry has been growing rapidly, driven by increasing demand for travel and tourism, as well as the rise of the middle class. OYO’s IPO will provide investors with an opportunity to participate in this growth story, which is expected to continue for several years to come.
In conclusion, OYO’s decision to file its IPO papers with SEBI by September 2025 is a significant development in the Indian startup ecosystem. The company’s record profit performance and strong growth potential make it an attractive investment opportunity for investors. As OYO prepares to take the next step in its growth journey, it will be interesting to see how the company’s IPO pans out and what the future holds for this Indian hospitality giant.
News Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
