OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
In a significant development, hospitality firm OYO is set 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 back of a remarkable profit performance, with the company reporting a profit of ₹623 crore (approximately $82 million) in the fiscal year 2025, marking a whopping 172% year-on-year increase.
This latest development is a significant milestone for OYO, which had previously attempted to go public twice, only to face setbacks. The company’s first IPO attempt was in 2020, but it was put on hold due to the COVID-19 pandemic. In 2022, OYO filed its draft red herring prospectus (DRHP) with SEBI, but it was delayed again due to regulatory issues.
Now, with its latest financial results showcasing impressive growth, OYO is poised to make a strong comeback to the public markets. The company’s decision to file its IPO papers is seen as a significant vote of confidence in its business model, which has been designed to cater to the increasing demand for affordable and comfortable accommodations.
Record Profit Performance
OYO’s impressive profit performance in FY25 is a testament to the company’s ability to adapt and evolve in a rapidly changing market. The company’s revenue grew by 33% year-on-year to ₹4,454 crore (approximately $580 million), driven by a significant increase in bookings and occupancy rates.
The company’s profit margin expanded to 14% in FY25, up from 5% in the previous year, indicating a significant improvement in its operating efficiency. OYO’s ability to maintain its pricing power, despite increasing competition in the hospitality industry, has been a key factor in its profit growth.
Dispute with Zostel Resolved
The Delhi High Court’s recent ruling in OYO’s favour in its dispute with Zostel has also boosted the company’s confidence ahead of its IPO. Zostel had claimed a 7% equity stake in OYO, which the company had disputed. The Delhi High Court’s ruling has now put an end to the dispute, paving the way for OYO to focus on its IPO plans.
IPO Plans
OYO’s IPO plans are expected to be a significant event in the Indian startup ecosystem, with the company aiming to raise funds to accelerate its growth plans. The company has already started engaging with investors and is expected to finalise its IPO plans in the coming weeks.
The company’s IPO is expected to be a mix of fresh issuance of shares and an offer for sale (OFS) by existing shareholders. The OFS is expected to include shares held by investors such as SoftBank, Sequoia Capital, and Hero Enterprise.
Key Highlights
- OYO to file its IPO papers with SEBI between August and September 2025.
- Targeting a valuation of $6-7 billion in its IPO.
- Company reports a profit of ₹623 crore (approximately $82 million) in FY25, marking a 172% year-on-year increase.
- Delhi High Court rules in OYO’s favour in its dispute with Zostel, dismissing the latter’s 7% equity claim.
Conclusion
OYO’s decision to file its IPO papers with SEBI is a significant development in the Indian startup ecosystem. The company’s impressive profit performance and its ability to adapt to changing market conditions have put it in a strong position to make a successful comeback to the public markets.
As OYO prepares for its IPO, it will be interesting to see how the company plans to utilize the funds raised to accelerate its growth plans. With its strong brand presence and growing demand for affordable accommodations, OYO is well-positioned to continue its growth trajectory in the coming years.
Source
https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
