OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
In a significant development, hospitality firm OYO is planning to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025, aiming for a valuation of $6-7 billion. This move comes on the heels of the company reporting a record profit of ₹623 crore in FY25, marking a whopping 172% year-on-year increase.
OYO’s IPO journey has been a long and arduous one. The company had initially filed its IPO papers in 2020, but had to withdraw them due to the COVID-19 pandemic. In 2022, OYO attempted an IPO again, but had to put it on hold due to market volatility and regulatory hurdles. Now, it appears that the company is ready to take the IPO route once more, with a more robust financial performance and a stronger brand presence.
OYO’s FY25 results are a testament to the company’s resilience and adaptability in the face of challenges. The company’s revenue grew by 34% year-on-year to ₹3,444 crore, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expanded by 440 basis points to 23.4%. The company’s net debt also decreased by 34% to ₹1,342 crore, indicating a significant improvement in its financial health.
The company’s profit growth can be attributed to its focus on cost optimization, asset-light business model, and strategic investments in technology and talent. OYO has also been expanding its presence in new markets, including the United States and Southeast Asia, which has contributed to its revenue growth.
OYO’s success is also reflected in its brand valuation. According to a recent report by Brand Finance, OYO’s brand value has increased by 34% to $2.5 billion, making it one of the most valuable hospitality brands in the world.
In addition to its financial performance, OYO has also been making headlines for its legal battles. The company had been embroiled in a dispute with its rival, Zostel, over a 7% equity claim. However, the Delhi High Court recently ruled in OYO’s favour, dismissing Zostel’s claim and paving the way for OYO to focus on its IPO plans.
The OYO IPO is expected to be a highly anticipated event in the Indian startup ecosystem. The company’s valuation of $6-7 billion would make it one of the most valuable Indian startups to go public. The IPO proceeds could be used to fund OYO’s expansion plans, repay debt, and invest in new technologies and initiatives.
OYO’s IPO plans have also been welcomed by investors and analysts, who see the company as a prime candidate for a successful listing. “OYO’s financial performance has been impressive, and its brand valuation is likely to continue to grow,” said a leading analyst. “The company has a strong management team and a solid business model, which makes it an attractive investment opportunity.”
In conclusion, OYO’s plans to file its IPO papers with SEBI are a significant development in the Indian startup ecosystem. The company’s record profit and strong financial performance make it an attractive candidate for a successful listing. With its valuation of $6-7 billion, OYO is poised to become one of the most valuable Indian startups to go public. As the company prepares to take the IPO route once more, investors and analysts alike will be watching with great interest.
News Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
