OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
In a significant development, hospitality firm OYO is planning to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025, aiming for a valuation of $6-7 billion. This move comes after the company reported a record profit of ₹623 crore in the fiscal year 2025, marking a remarkable 172% year-on-year increase.
OYO’s IPO plans have been in the works for some time now, and the company had previously filed its draft red herring prospectus (DRHP) in 2020. However, it had to withdraw the DRHP due to market conditions and regulatory hurdles. The company has now revived its IPO plans, and with a record profit under its belt, it is confident of raising significant funds from the market.
The company’s decision to go public is seen as a major milestone in its journey, which has been marked by rapid growth and expansion. OYO has become one of the largest hospitality chains in the world, with a presence in over 80 countries. The company has disrupted the traditional hospitality industry by offering affordable and affordable accommodation options to travelers.
OYO’s financial performance has been impressive, with the company reporting a significant increase in revenue and profitability in recent years. The company’s revenue grew by 55% year-on-year to ₹3,444 crore in FY25, while its net profit jumped by 172% to ₹623 crore. The company’s operating profit margin also expanded to 17.4% in FY25, up from 12.5% in FY24.
The company’s strong financial performance has been driven by its ability to scale quickly and efficiently, thanks to its technology-enabled platform. OYO’s platform allows it to manage its inventory of hotels and apartments more effectively, reducing costs and increasing revenue. The company has also been able to tap into the growing demand for affordable and affordable accommodation options, particularly in emerging markets.
OYO’s IPO plans are also seen as a vote of confidence in the Indian startup ecosystem, which has been growing rapidly in recent years. The company’s success is a testament to the entrepreneurial spirit and innovation that drives India’s startup ecosystem.
In related news, the Delhi High Court has recently ruled in OYO’s favour in its dispute with Zostel, dismissing the latter’s 7% equity claim. Zostel had claimed that OYO had breached its agreement and stolen its intellectual property, but the court ruled in OYO’s favour, paving the way for the company to move forward with its IPO plans.
OYO’s IPO is expected to be a significant event in the Indian capital markets, with the company looking to raise around $6-7 billion from the issue. The IPO is likely to be a mix of fresh issue and offer for sale (OFS) by existing shareholders, including founders and investors.
The company’s IPO plans have been well-received by investors, with many seeing it as a good opportunity to invest in a fast-growing and profitable business. OYO’s IPO is expected to be one of the largest in India this year, and it will be closely watched by investors and analysts alike.
In conclusion, OYO’s decision to file its IPO papers with SEBI is a significant development in the company’s journey. With a record profit under its belt and a strong financial performance, the company is well-positioned to raise significant funds from the market. The company’s IPO plans are expected to be a major event in the Indian capital markets, and it will be closely watched by investors and analysts alike.
Source: https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
