OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
As the Indian startup ecosystem continues to thrive, hospitality firm OYO is gearing up for its third attempt at an initial public offering (IPO). According to recent reports, OYO plans 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 news comes on the heels of OYO’s impressive financial performance in the fiscal year 2025 (FY25), which saw the company register a profit of ₹623 crore. This marks a staggering 172% year-on-year increase, cementing OYO’s position as a leader in the hospitality industry.
OYO’s decision to go public is a testament to the company’s resilience and adaptability in the face of challenges. Having faced a tumultuous journey since its inception, OYO has consistently demonstrated its ability to innovate and evolve to meet the changing needs of its customers.
The company’s IPO attempt is also likely to be driven by its recent victory in the Delhi High Court, which dismissed Zostel’s claim to 7% equity in OYO. This ruling has paved the way for OYO to focus on its growth strategy and expansion plans, both domestically and internationally.
OYO’s Journey to IPO
OYO’s story began in 2013, when its founder, Ritesh Agarwal, launched the company as a budget hotel chain. Initially, the company focused on providing affordable accommodations to travelers, leveraging its innovative business model and technology to disrupt the traditional hospitality industry.
Over the years, OYO expanded rapidly, both in terms of geographic presence and product offerings. The company entered new markets, including the United States, Europe, and Southeast Asia, and diversified its portfolio to include vacation rentals, coworking spaces, and even food delivery services.
However, OYO’s rapid growth was not without its challenges. In 2020, the company faced a major crisis when it struggled to manage its inventory and pricing, leading to a significant decline in its valuation. This was followed by a series of layoffs and restructuring efforts, aimed at streamlining the company’s operations and cutting costs.
Despite these challenges, OYO has continued to innovate and adapt, driven by its commitment to providing high-quality services to its customers. In FY25, the company reported a significant turnaround, with its revenue increasing by 30% year-on-year to ₹2,456 crore.
Why OYO’s IPO Matters
OYO’s IPO is significant not just for the company itself, but for the broader Indian startup ecosystem. As one of the country’s most successful startups, OYO’s success will serve as a benchmark for other companies looking to go public.
Moreover, OYO’s IPO is expected to have a positive impact on the Indian capital markets, providing a much-needed boost to the IPO market. The company’s valuation of $6-7 billion is expected to be one of the largest in the Indian startup ecosystem, making it an attractive opportunity for investors.
Furthermore, OYO’s IPO is expected to create a new wave of entrepreneurship and innovation in the hospitality and travel sectors. As the company continues to grow and expand, it is likely to create new job opportunities and stimulate economic growth, both in India and globally.
Conclusion
OYO’s decision to file for an IPO is a testament to the company’s resilience and adaptability in the face of challenges. With its impressive financial performance and recent victory in the Delhi High Court, OYO is well-positioned to make a successful debut on the stock markets.
As the company looks to the future, it is likely to continue to innovate and evolve, leveraging its technology and business model to disrupt the traditional hospitality industry. With its IPO, OYO is set to create a new wave of entrepreneurship and innovation, paving the way for the next generation of Indian startups.
Source:
https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
