OYO Eyes Third IPO Attempt After Record ₹623 Cr Profit
The hospitality industry has been on a rollercoaster ride in recent years, with the COVID-19 pandemic causing widespread disruptions and financial losses. However, one company that has managed to not only survive but thrive during this period is OYO, the popular hotel chain and short-term rental platform. After announcing a record profit of ₹623 crore (approximately $85 million) in FY25, OYO is now gearing up for its third attempt at an initial public offering (IPO).
According to recent reports, OYO is planning to file its IPO papers with the Securities and Exchange Board of India (SEBI) between August and September 2025, targeting a valuation of $6-7 billion. This is a significant increase from its previous attempts, which were valued at around $5 billion.
The company’s recent financial performance has been nothing short of impressive. OYO’s FY25 profits represent a staggering 172% year-on-year increase, demonstrating the firm’s resilience and ability to adapt to changing market conditions. This impressive growth is attributed to the company’s focus on expanding its presence in key markets, improving operational efficiency, and enhancing its offerings to meet the evolving needs of its customers.
OYO’s decision to go public comes at a time when the hospitality industry is showing signs of recovery. With the easing of travel restrictions and a growing demand for travel, OYO is well-positioned to capitalize on this trend. The company’s extensive network of hotels and short-term rental properties, combined with its user-friendly platform and competitive pricing, makes it an attractive option for travelers.
Another significant development that has boosted OYO’s confidence in its IPO plans is the recent ruling by the Delhi High Court in its favor in its dispute with Zostel. The court dismissed Zostel’s claim for 7% equity in the company, paving the way for OYO to move forward with its IPO plans.
The dispute between OYO and Zostel dates back to 2017, when Zostel accused OYO of misrepresenting its financials and failing to disclose certain information. The matter was taken to court, with OYO denying all allegations and claiming that Zostel’s claims were baseless. The Delhi High Court’s ruling in OYO’s favor is a significant victory for the company, clearing the way for its IPO plans.
OYO’s IPO plans are expected to be a major milestone for the company, providing it with the necessary funds to drive further growth and expansion. The company has been aggressively expanding its presence in key markets, including India, China, and Southeast Asia, and has been investing heavily in technology and digital marketing to improve its offerings and reach.
The company’s IPO plans are also expected to be closely watched by industry experts and investors, who will be keen to see how OYO’s financials and growth prospects stack up against its peers. With its impressive financial performance and growing presence in the hospitality industry, OYO is well-positioned to make a strong debut on the stock market.
In conclusion, OYO’s decision to go public is a significant development in the hospitality industry, and its record profit in FY25 is a testament to the company’s resilience and ability to adapt to changing market conditions. With its extensive network of hotels and short-term rental properties, combined with its user-friendly platform and competitive pricing, OYO is well-positioned to capitalize on the growing demand for travel and accommodation. As the company prepares to file its IPO papers with SEBI, investors and industry experts will be eagerly awaiting the outcome, which is expected to be a major milestone for OYO and the hospitality industry as a whole.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
