OYO Eyes Third IPO Attempt After Recording a Record ₹623 Cr Profit
The hospitality industry has seen its fair share of ups and downs over the years, but one company that has been making waves is OYO. The Indian hospitality firm has been on a growth spurt, and its latest financial results are a testament to its success. In the fiscal year 2025, OYO reported a profit of ₹623 crore, marking a whopping 172% year-on-year increase. This impressive performance has prompted the company to plan its third IPO attempt, with a target valuation of $6-7 billion.
A Record-Breaking Profit
OYO’s financial results for FY25 are nothing short of spectacular. The company’s profit has more than doubled compared to the previous year, with revenue growing by 30% year-on-year. This significant growth is a result of OYO’s strategic expansion into new markets, including international territories. The company has also been focusing on increasing its average daily rate (ADR) and occupancy rates, which has had a positive impact on its revenue.
OYO’s ability to scale quickly and efficiently has been a key factor in its success. The company has been able to do this by leveraging technology to streamline its operations and reduce costs. This has enabled OYO to maintain its competitive edge in the market, even as the hospitality industry continues to evolve.
Preparing for Its Third IPO Attempt
The impressive financial results have given OYO the green light to pursue its third IPO attempt. The company plans to file its IPO papers with the Securities and Exchange Board of India (SEBI) between August and September 2025. This will be OYO’s third attempt at an IPO, with its previous attempts in 2019 and 2020 being unsuccessful.
OYO’s IPO is expected to be a significant event in the Indian capital markets, with the company targeting a valuation of $6-7 billion. This valuation is significantly higher than OYO’s previous attempts, highlighting the company’s growing reputation and success in the hospitality industry.
Recent Developments
OYO has been making headlines recently, thanks to a favorable ruling by the Delhi High Court. The court dismissed Zostel’s claim for 7% equity in OYO, ending a long-standing dispute between the two companies. This ruling has given OYO a significant boost, as it allows the company to focus on its growth strategy without any distractions.
The dispute between OYO and Zostel dates back to 2015, when OYO’s founder Ritesh Aggarwal acquired Zostel’s assets. Zostel had claimed that OYO had not followed proper procedures during the acquisition, and had demanded a 7% stake in the company. The Delhi High Court’s ruling has put an end to this dispute, allowing OYO to move forward without any uncertainty.
Conclusion
OYO’s record-breaking profit and plans for its third IPO attempt are a testament to its success in the hospitality industry. The company’s ability to scale quickly and efficiently has been a key factor in its growth, and its focus on technology has enabled it to maintain its competitive edge.
As OYO prepares for its IPO, it is likely to attract significant attention from investors. The company’s target valuation of $6-7 billion is a significant increase from its previous attempts, highlighting OYO’s growing reputation and success in the hospitality industry.
Only time will tell if OYO is successful in its IPO attempt, but one thing is certain – the company’s impressive financial results and recent developments make it an exciting story to follow.
Source:
https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
