OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
The hospitality industry has been witnessing a significant shift in recent years, with the rise of online booking platforms and the increasing demand for affordable and convenient accommodations. Amidst this backdrop, OYO, one of the leading hospitality firms in the country, 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 comes as a major development, considering the company’s impressive financial performance and a significant valuation of $6-7 billion.
OYO’s decision to go public for the third time is a testament to its growth and success, which has been fueled by its innovative business model, strategic partnerships, and rapid expansion. In the financial year 2025 (FY25), the company reported a record profit of ₹623 crore, marking a staggering 172% year-on-year increase. This impressive growth has further solidified OYO’s position as a leading player in the hospitality industry, and its IPO is expected to be one of the most anticipated events in the Indian startup ecosystem in the coming months.
The company’s financial performance is a result of its focus on scaling its business, expanding its presence in new markets, and improving operational efficiency. In FY25, OYO’s revenue grew by 155% to reach ₹3,444 crore, driven by a significant increase in occupancy rates and average daily rates (ADRs) across its network of hotels and vacation rentals. The company’s strong financials have also enabled it to maintain a healthy balance sheet, with a net debt of ₹1,311 crore as of March 2025.
OYO’s IPO plans have been made possible by the company’s recent dispute resolution with Zostel, a rival hospitality firm. In a significant ruling, the Delhi High Court recently dismissed Zostel’s claim of 7% equity in OYO, paving the way for the company to move forward with its IPO plans. The dispute, which has been ongoing for several years, has been a major distraction for OYO, but the company’s management has maintained that it has been focused on its growth plans and has not let the dispute impact its operations.
The IPO is expected to be a significant milestone for OYO, providing the company with the necessary funds to further scale its business and expand its presence globally. With a valuation of $6-7 billion, the IPO is likely to be one of the largest in the Indian startup ecosystem, and it is expected to attract significant interest from institutional investors and retail investors alike.
OYO’s IPO plans come at a time when the Indian hospitality industry is witnessing a significant shift towards online booking platforms. According to a recent report by HVS, the Indian hospitality industry is expected to grow at a CAGR of 8-10% over the next five years, driven by the increasing demand for affordable and convenient accommodations. The report also highlighted the growing popularity of online booking platforms, with 70% of hotel bookings now being made online.
OYO’s success can be attributed to its innovative business model, which focuses on providing affordable and convenient accommodations to travelers. The company’s platform allows customers to book hotels, vacation rentals, and other types of accommodations in real-time, providing them with a seamless and hassle-free experience. OYO’s platform also provides hotel owners and operators with a range of services, including marketing, distribution, and operations support, enabling them to optimize their occupancy rates and revenue.
In addition to its IPO plans, OYO is also focusing on expanding its presence globally. The company has already established a significant presence in several countries, including China, Japan, and the United States, and it is planning to further expand its operations in these markets. OYO’s global expansion plans are expected to be fueled by its strong financials and its ability to adapt to local market conditions.
In conclusion, OYO’s decision to file its IPO papers with SEBI is a significant development in the Indian startup ecosystem. The company’s impressive financial performance, strong growth prospects, and innovative business model make it an attractive investment opportunity for institutional investors and retail investors alike. With a valuation of $6-7 billion, the IPO is likely to be one of the largest in the Indian startup ecosystem, and it is expected to attract significant interest from investors.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
