OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
In a significant development in the Indian hospitality sector, OYO, one of the leading hotel chains in the country, is planning to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025. This bold move comes after the company reported a record profit of ₹623 crore in the fiscal year 2025, marking a whopping 172% year-on-year increase.
The news of OYO’s impending IPO has sent shockwaves through the financial circles, with estimates suggesting that the company is targeting a valuation of $6-7 billion. This would make OYO one of the most highly valued companies in the Indian startup ecosystem, alongside other household names like Flipkart and Paytm.
OYO’s decision to go public comes on the back of a series of strategic moves aimed at strengthening its position in the competitive hospitality market. The company has been aggressively expanding its global footprint, with a presence in over 80 countries and a portfolio of over 50,000 hotels.
In addition to its international expansion, OYO has also been focusing on improving its technology platform, which enables hotel owners to manage their properties more efficiently. The company’s proprietary technology platform, known as OYO’s “Super App,” has been instrumental in driving growth and profitability for the company.
The success of OYO’s technology platform has been reflected in its financial performance, with the company reporting a significant increase in revenue and profitability in FY25. The company’s revenue grew by 35% year-on-year to ₹3,344 crore, while its profit jumped by 172% to ₹623 crore.
OYO’s financial performance has been boosted by its ability to maintain high occupancy rates and average daily rates (ADRs) across its hotel network. The company’s occupancy rates have remained consistently high, averaging around 85% in FY25, while its ADRs have also shown a significant increase, growing by 15% year-on-year to ₹2,444.
The company’s financial performance has also been boosted by its ability to reduce its costs and improve its operational efficiency. OYO has been able to achieve this through a series of initiatives aimed at reducing its overheads and improving its supply chain management.
One of the key factors that has contributed to OYO’s success is its ability to build strong relationships with its hotel partners. The company has been able to achieve this through a series of initiatives aimed at improving the quality of its hotel network and enhancing the overall guest experience.
OYO’s commitment to quality and customer satisfaction has been reflected in its guest satisfaction ratings, which have consistently been high across its hotel network. The company’s guest satisfaction ratings have been driven by its focus on providing a seamless and enjoyable guest experience, which has enabled it to build a loyal customer base.
In addition to its financial performance, OYO’s decision to go public has also been boosted by its recent legal victory over its rival, Zostel. The Delhi High Court recently ruled in OYO’s favour, dismissing Zostel’s claim for a 7% equity stake in the company.
The dispute between OYO and Zostel dates back to 2015, when Zostel filed a lawsuit claiming that OYO had misused its intellectual property and breached its agreement with the company. The dispute has been ongoing for several years, with both parties engaging in a series of legal battles.
However, the recent court ruling has dealt a significant blow to Zostel’s claims, paving the way for OYO to move forward with its IPO plans. The company’s legal victory has also sent a strong message to its competitors and investors, highlighting its commitment to upholding the law and protecting its intellectual property.
In conclusion, OYO’s decision to file its IPO papers with SEBI marks a significant milestone in the company’s history. The company’s financial performance has been impressive, with a record profit of ₹623 crore in FY25. Its ability to build strong relationships with its hotel partners and improve its operational efficiency has also been instrumental in driving growth and profitability.
As OYO prepares to go public, the company has sent a strong message to its competitors and investors, highlighting its commitment to quality, customer satisfaction, and upholding the law. With its strong financial performance and impressive growth prospects, OYO is poised to make a significant impact in the Indian hospitality sector in the years to come.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
