OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
In a significant development, hospitality firm OYO is set 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 follows a remarkable ₹623 crore profit in FY25, marking a 172% year-on-year increase. The announcement comes on the heels of a significant victory for OYO in its dispute with Zostel, which has been resolved in its favor by the Delhi High Court.
For those who may not be familiar, OYO is one of the world’s largest hospitality chains, with a presence in over 80 countries. The company has been on a rapid expansion trajectory, having grown its hotel network from just 100 rooms in 2013 to over 50,000 rooms today. OYO’s success can be attributed to its innovative business model, which focuses on providing affordable and quality accommodations to travelers, while also offering a seamless booking and check-in experience.
The company’s financial performance has been nothing short of phenomenal, with FY25 being a particularly strong year. OYO’s revenue grew by 35% year-on-year to ₹5,564 crore, while its EBITDA margin expanded by 440 basis points to 24.6%. The company’s net profit of ₹623 crore represents a staggering 172% year-on-year increase, demonstrating its ability to drive profitability even in a challenging market environment.
So, what’s driving OYO’s impressive financial performance? According to Ritesh Agarwal, founder and CEO of OYO, the company’s success can be attributed to its focus on scalability, innovation, and customer-centricity. “We have been able to drive significant growth and profitability by leveraging our technology platform, expanding our network, and improving our operational efficiency,” Agarwal said in a recent interview.
OYO’s IPO plans are a testament to its commitment to becoming a publicly listed company. The company has already filed its draft red herring prospectus (DRHP) with SEBI, which is expected to be reviewed and approved in the coming months. The IPO is likely to be a significant one, with OYO targeting a valuation of $6-7 billion, making it one of the most valuable startups in India.
However, OYO’s IPO plans have not been without controversy. The company has been embroiled in a long-standing dispute with Zostel, a rival hospitality firm that has been seeking a 7% equity stake in OYO. The dispute has been ongoing for several years, with both parties engaging in a series of legal battles. However, in a significant development, the Delhi High Court recently ruled in OYO’s favor, dismissing Zostel’s claim.
The court’s decision is a major relief for OYO, which had been facing significant uncertainty surrounding its ownership structure. The company has been able to focus on its growth plans, including its expansion into new markets and its plans for an IPO.
So, what’s next for OYO? With its IPO plans underway, the company is poised to enter a new phase of growth and expansion. OYO has already announced plans to expand its presence in new markets, including the United States, Europe, and Asia. The company is also investing heavily in its technology platform, which is expected to drive further growth and efficiency.
In conclusion, OYO’s announcement of its third IPO attempt is a significant development in the Indian startup ecosystem. With its impressive financial performance and plans for expansion, the company is well-positioned to become one of the most valuable startups in the country. As OYO continues to grow and expand, it will be exciting to see how the company leverages its technology platform to drive growth and profitability.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
