By Q1 FY25, Oyo Plans to Register for an IPO

According to media citations, hospitality startup Oyo has begun preparing its draft red herring prospectus (DRHP), which would be its third attempt to go public, by the first quarter of the upcoming fiscal year. Ritesh Agarwal, the founder, is currently rearranging his shareholdings, which is connected to the upcoming IPO.
According to media reports last week, Peak XV Partners has already sold shares worth $80-90 million, while early investors, Lightspeed Venture Partners and others, are seeking to sell their shares in the Gurgaon-based company. Agarwal has entered into debt finance agreements that include the IPO plans in order to execute a public offering this year. Media reports emphasised that Oyo's goal is to file well before the conclusion of the first quarter.
Agarwal, SoftBank group, and HNI are Expected to Retain Key Space
In order to invest now and benefit from an IPO, the new investors—mostly family offices—are interested in the IPO link. Before the anticipated IPO filing, three significant shareholder groups—founder Agarwal, SoftBank Group, and HNI family offices—are anticipated to possess a significant portion of the company's capital table, indicating a concentrated ownership structure.
According to the most recent data on Tracxn, Agarwal and SoftBank share more than 75% of Oyo parent company Oravel Stays; however, the founder's stake may increase further as a result of his new investment in the company, which he founded in 2012.
According to an Oyo representative, the firm has not yet decided on the IPO's timeline. Oyo is positioned alongside late-stage consumer internet companies like Zepto that are considering public markets this year as a result of the IPO rush. After the public markets embraced new-age companies in 2024, at least 20 startups are anticipated to enter the market this year.
Oyo Making Significant Efforts to Launch IPO
In January 2023, the stock market authority rejected Oyo's initial 2021 effort to go public. After that, the business submitted a new application for a smaller initial public offering (IPO), but it withdrew it in May of last year and chose to raise money privately. At a valuation of $2.4 billion, it concluded a fundraising round of INR 1,457 crore. From a height of $9 billion in 2021 to the present $4 billion, the SoftBank-backed company's valuation has been erratic, reflecting a resurgence in sustainable operations.
Oyo's biggest investor, SoftBank, had cut its valuation from $3.4 billion to $2.7 billion in 2022. Oyo's updated confidential filing called for a 40–60% lower initial public offering (IPO), whereas its initial proposal was for a $1.2 billion (INR 8,430 crore) offering. Although specifics are still being completed, its most recent IPO is probably going to be less than $1 billion. However, at a valuation of about $4 billion, it is anticipated to fetch a higher price in the ongoing stake sale discussions. In the meantime, Oyo has become profitable, and its cash balance has strengthened thanks to recent fundraising.
In FY24, Oyo reported its first-ever profit after taxes of INR 229 crore. In the first quarter of FY25, the company reported a profit of INR 132 crore. This performance has been fuelled by strategic investments in Europe as well as expansion in Southeast Asia, India, and the US.

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