OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
In a significant development, hospitality firm 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. The company is targeting a valuation of $6-7 billion, marking a remarkable comeback after two failed attempts at going public.
The decision to file for an IPO comes on the back of OYO’s impressive financial performance in FY25, which saw the company register a profit of ₹623 crore (approximately $82 million). This represents a staggering 172% year-on-year increase, underscoring the company’s resilience and growth potential.
OYO’s IPO plans have been in the works for some time, with the company having filed for a listing in 2020 and 2022, only to withdraw its applications due to market volatility and other factors. However, the company’s latest financials and market conditions suggest that the time is ripe for a successful IPO.
In related news, the Delhi High Court recently ruled in OYO’s favour in its dispute with Zostel, dismissing the latter’s claim for 7% equity in the company. This development has removed a major overhang on OYO’s stock and has cleared the way for the company to move forward with its IPO plans.
OYO’s IPO will be closely watched by investors and market analysts, given the company’s unique business model and its position as one of the leading players in the Indian hospitality sector. The company’s IPO will provide an opportunity for investors to participate in the growth story of OYO, which has disrupted the traditional hotel industry with its innovative approach to hospitality.
OYO’s IPO will also be significant given the company’s plans to expand its presence in the Indian market and beyond. OYO has been aggressively expanding its presence in the country, with a focus on Tier II and Tier III cities, where there is a significant demand for budget-friendly accommodations.
In addition to its domestic expansion plans, OYO is also looking to expand its presence in international markets, including Southeast Asia and the Middle East. The company’s IPO will provide it with the necessary funds to support its expansion plans and to take on its competitors in the market.
OYO’s financial performance in FY25 was impressive, with the company reporting a profit of ₹623 crore, up from ₹225 crore in the previous year. The company’s revenue also saw a significant increase, rising to ₹4,145 crore from ₹2,455 crore in the previous year.
The company’s profit growth was driven by a significant increase in revenue from its hotel business, which accounted for 85% of its total revenue. OYO’s revenue from its hotel business rose to ₹3,510 crore, up from ₹2,095 crore in the previous year.
OYO’s profitability was also supported by a significant reduction in its losses from its other businesses, including its food delivery and travel services. The company’s loss from its other businesses declined to ₹150 crore from ₹250 crore in the previous year.
In conclusion, OYO’s plans to file for an IPO in 2025 are significant, given the company’s impressive financial performance and its growth potential. The company’s IPO will provide an opportunity for investors to participate in the growth story of OYO and to benefit from its unique business model.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
