OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
After a tumultuous journey, hospitality giant OYO is gearing up to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025. This ambitious move comes after the company reported a staggering ₹623 crore profit in the financial year 2025, marking a 172% year-on-year increase. The Delhi High Court’s recent ruling in OYO’s favor in its dispute with Zostel has also paved the way for the IPO.
OYO’s decision to go public is a significant development in the Indian startup ecosystem, which has seen several high-profile IPOs in recent years. The company’s valuation is expected to be in the range of $6-7 billion, making it one of the most anticipated listings in the Indian market.
The journey to the IPO has not been easy for OYO. The company has faced several challenges, including regulatory issues and disputes with rival companies. However, under the leadership of its CEO, Rohit Aggarwal, OYO has managed to overcome these hurdles and emerge stronger.
OYO’s success can be attributed to its innovative business model, which focuses on providing affordable and high-quality accommodations to travelers. The company has expanded rapidly across India and internationally, with a presence in over 80 countries. Its partnership with global hotel chains and local players has helped OYO to establish itself as a leading player in the hospitality industry.
The company’s financial performance has been impressive, with revenue growing by 50% year-on-year in FY25. OYO’s profitability has also improved significantly, with the company reporting a net profit margin of 15%. This is a testament to OYO’s ability to maintain its operational efficiency while expanding its business.
OYO’s IPO will be a significant milestone in the company’s history, providing an opportunity for its employees, investors, and customers to share in its success. The IPO proceeds will be used to fund the company’s expansion plans, including the development of new products and services.
The Delhi High Court’s recent ruling in OYO’s favor in its dispute with Zostel has also given the company a boost. Zostel had claimed a 7% equity stake in OYO, but the court dismissed the claim, paving the way for OYO to move forward with its IPO plans.
The ruling is a significant victory for OYO, which has been embroiled in a legal dispute with Zostel for several years. The dispute centered around the ownership of OYO’s intellectual property, including its trademark and branding. The court’s decision has put an end to the uncertainty and allows OYO to focus on its IPO plans.
In conclusion, OYO’s decision to file its IPO papers with SEBI is a significant development in the Indian startup ecosystem. The company’s financial performance has been impressive, with revenue growing by 50% year-on-year in FY25. The Delhi High Court’s ruling in OYO’s favor in its dispute with Zostel has also given the company a boost, paving the way for its IPO plans.
As OYO prepares to go public, it will be interesting to see how the company will use the proceeds from the IPO. Will it focus on expanding its business, developing new products and services, or paying off its debts? Only time will tell. However, one thing is certain – OYO’s IPO will be a significant event in the Indian startup ecosystem, providing an opportunity for investors to share in the company’s success.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
