OYO’s IPO Journey: Third Time’s the Charm?
OYO, the travel-tech unicorn founded by Ritesh Agarwal, is preparing for its third attempt to go public. After withdrawing IPO filings in 2021 and 2023 due to market volatility and regulatory hurdles, the company now aims to file its Draft Red Herring Prospectus (DRHP) by August 2025 and list in early 2026.
Pan-India Presence: From Pilgrimage Towns to Business Hubs
OYO operates over 1,300 company-serviced hotels across India, spanning 124 cities and aiming to reach 300+ cities by FY26. These include:
Leisure destinations: Darjeeling, Munnar, Port Blair
Pilgrimage hubs: Ayodhya, Banaras, Rameshwaram
Business corridors: Gurugram, Vapi, Pune
India contributes 30% of OYO’s global revenue, with domestic travel demand outpacing international growth
IPO Overview: Third Attempt, Stronger Fundamentals
|
IPO
Details |
Figures |
|
Issue
Size |
₹8,430
crore |
|
Fresh
Issue |
₹7,000
crore |
|
Offer
for Sale |
₹1,430
crore |
|
Price
Band (Expected) |
₹640–₹650
per share |
|
Valuation
Target |
$6–7
billion |
|
Net
Profit (FY25) |
₹623
crore |
|
Adjusted
EBITDA (FY24) |
₹888
crore |
|
Debt
Buyback |
$195
million (Term Loan B) |
Target Valuation and Financials
- Expected IPO Valuation: $6–7 billion
- FY25 Profit After Tax (PAT): ₹623 crore—a 172% jump from FY24
- Adjusted EBITDA (FY24): ₹888 crore
- Debt Reduction: $195 million buyback of Term Loan B
This financial turnaround marks OYO as one of India’s most profitable startups in FY25.
Peer Competition in Hospitality Tech
|
Competitor |
Segment |
USP |
|
Treebo
Hotels |
Budget
hotel chain |
Clean,
standardized rooms |
|
FabHotels |
Budget
& business hotels |
Tech-enabled
booking, metro focus |
|
Airbnb |
Vacation
rentals |
Global
reach, host-driven model |
|
MakeMyTrip |
OTA
aggregator |
Flights
+ hotels + packages |
|
Taj/IHCL |
Premium
hotel chain |
Luxury,
heritage, brand loyalty |
Why the Delay?
OYO’s earlier IPO plans were derailed by:
- Regulatory scrutiny from SEBI over KPIs and litigation
- Investor concerns about profitability and governance
- Legal disputes with hotel partners
The company has since restructured ownership, improved governance, and focused on sustainable growth.
Business Model Reset
OYO transitioned to a franchise-based model, enabling asset-light operations and better margin control. It added 5,000 hotels and 6,000 homes globally in FY24, signaling renewed expansion.
Should You Invest?
OYO’s IPO offers a mix of short-term listing potential and long-term growth. Its leadership in tech-driven hospitality and improved financials make it a compelling choice for investors.
