OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
As the Indian startup ecosystem continues to flourish, hospitality firm OYO is gearing up for its third attempt at an initial public offering (IPO). The company is planning to file its IPO papers with the Securities and Exchange Board of India (SEBI) between August and September 2025, with a target valuation of $6-7 billion.
This development comes after OYO reported a record profit of ₹623 crore in the fiscal year 2025, marking a whopping 172% year-on-year increase. This impressive performance is likely to give investors and stakeholders confidence in the company’s future prospects.
OYO’s decision to go public comes at a time when the Indian hospitality industry is experiencing a significant rebound after the COVID-19 pandemic. The company’s IPO will be closely watched, as it is expected to set a benchmark for other Indian startups looking to list on the stock exchange.
In recent news, the Delhi High Court has ruled in OYO’s favour in its dispute with Zostel, dismissing the latter’s 7% equity claim. This favourable outcome has likely boosted OYO’s confidence in its financial position and its ability to successfully navigate the IPO process.
OYO’s IPO will be its third attempt at going public. The company had initially planned to list on the stock exchange in 2021, but it delayed the process due to market volatility and regulatory hurdles. In 2022, OYO again attempted to file its IPO papers with SEBI, but it was forced to delay the process once again due to the ongoing pandemic and its impact on the hospitality industry.
However, it appears that OYO has learned from its previous experiences and is now better prepared to navigate the IPO process. The company has reportedly hired investment banks Morgan Stanley, JP Morgan, and ICICI Securities to manage the IPO and advise on the listing process.
OYO’s IPO will be a significant event in the Indian startup ecosystem, as it will be one of the largest IPOs in the country’s history. The company’s $6-7 billion valuation is expected to be met with interest from institutional investors, high-net-worth individuals, and retail investors.
The hospitality industry has been a significant contributor to India’s GDP, and OYO’s IPO is expected to bring in much-needed funds to support the growth of the sector. The company has already expanded its operations to over 80 countries and has a significant presence in the Indian market.
OYO’s success can be attributed to its innovative business model, which focuses on providing affordable and comfortable accommodation options to travelers. The company has disrupted the traditional hotel industry by offering a range of services, including food, laundry, and travel assistance, at a lower cost than traditional hotels.
In addition, OYO has also expanded its services to include vacation rentals, coworking spaces, and other related segments. This diversification has helped the company to reduce its dependence on a single segment and increase its revenue streams.
OYO’s IPO will also be closely watched due to its potential impact on the Indian startup ecosystem. The company’s success will encourage other Indian startups to consider listing on the stock exchange, which could lead to increased investment in the sector and job creation.
In conclusion, OYO’s decision to file its IPO papers with SEBI is a significant development in the Indian startup ecosystem. The company’s record profit and favourable court ruling have likely boosted its confidence in its financial position and its ability to successfully navigate the IPO process.
As OYO prepares to go public, it is likely to be a closely watched event in the market. The company’s valuation and listing performance will be closely monitored, and its success will have a significant impact on the Indian startup ecosystem.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
