HBI Staff | Hyderabad 
According to insider sources, H World Group Ltd, a prominent Chinese hospitality company, has divested a 0.15% stake in OYO, the Indian hospitality and travel-tech firm, for approximately INR 75 crore. This transaction places the valuation of OYO at around $6.5 billion.
In a series of transactions, H World Group (HWG), which previously held a 0.78% shareholding in Oravel Stays Ltd, the entity operating OYO, sold around one crore shares to a group of institutional investors and family offices based in the United Arab Emirates. Following these deals, HWG’s stake in OYO has reduced to 0.63%, now valued at over INR 300 crore.
When approached for comment, an OYO spokesperson declined to provide a statement on the matter.
Back in 2017, HWG acquired a stake in OYO worth $10 million during a funding round led by SoftBank’s Vision Fund, which raised $250 million. At that time, the reported valuation of OYO stood between $850 million and $900 million.
OYO has been preparing for an initial public offering (IPO) and recently resubmitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with certain updates. The company initially filed preliminary documents for an IPO worth INR 8,430 crore in September 2021.
Due to market volatility at the time, the launch of the IPO was delayed, prompting OYO to consider a lower valuation of approximately $7-8 billion instead of its original target of $11 billion. The company continues to navigate the IPO process as it seeks to enter the public market.
