OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
India’s hospitality giant, OYO, is gearing up for its third attempt at going public. The company plans to file its initial public offering (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 on the back of a record profit of ₹623 crore in FY25, marking a staggering 172% year-on-year increase.
OYO’s decision to go public comes at an opportune time, with the company’s financials showing significant improvement in recent years. The company’s revenue has grown steadily, from ₹2,300 crore in FY21 to ₹6,400 crore in FY25. This growth has been driven by OYO’s expansion into new markets, including the United States, Europe, and Southeast Asia.
The company’s profit margins have also improved significantly, with OYO reporting a net profit of ₹623 crore in FY25, up from ₹228 crore in FY21. This has been achieved through a combination of cost-cutting measures, such as reducing its dependence on external services, and increasing its revenue through the introduction of new business models.
OYO’s decision to go public is also seen as a vote of confidence in the company’s business model, which has been disrupted by the COVID-19 pandemic. The pandemic had a significant impact on the hospitality industry, with many hotels and resorts forced to shut down temporarily. However, OYO’s business model, which focuses on providing affordable and convenient accommodation options, has proved resilient, with the company reporting a significant increase in bookings and revenue during the pandemic.
In addition to its financial performance, OYO’s decision to go public is also driven by its recent legal victory against Zostel, a rival hospitality company. The Delhi High Court recently ruled in OYO’s favour, dismissing Zostel’s claim for a 7% equity stake in the company. This victory has given OYO a significant boost, allowing it to focus on its IPO plans without any distractions.
OYO’s IPO is expected to be a significant event in the Indian startup ecosystem, with many investors and analysts watching the company’s performance closely. The IPO is expected to be highly subscribed, with many institutional investors and individual investors likely to participate.
The company’s IPO is also seen as a test case for India’s secondary market, which has been struggling to attract international investors. OYO’s IPO is expected to attract significant interest from international investors, which could help to boost confidence in India’s secondary market.
In conclusion, OYO’s decision to go public is a significant development in the Indian startup ecosystem. The company’s record profit and improved financial performance make it an attractive investment opportunity, and its legal victory against Zostel has given it a significant boost. The company’s IPO is expected to be highly subscribed, and could help to boost confidence in India’s secondary market.
Source:
https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
