HBI Staff | Hyderabad 
Oyo, the hospitality startup known for its affordable and flexible accommodation offerings, is gearing up to file its draft red herring prospectus (DRHP) by the first quarter of the next financial year, marking its third attempt to go public. The IPO push is reportedly tied to ongoing shareholder restructuring led by founder Ritesh Agarwal, positioning Oyo to secure a consolidated ownership structure.
Key stakeholders such as SoftBank, Oyo’s largest investor, and high-net-worth family offices are expected to maintain significant control on the cap table, reflecting confidence in Oyo’s renewed profitability and global growth strategy. The IPO filing also aligns with debt financing agreements tied to Agarwal’s plans for a public offering within this calendar year.
Strategic Moves Driving Growth
The Gurgaon-based firm has been on a resurgence path, posting its first-ever profit after tax of INR 229 crore in FY24 and INR 132 crore in Q1 FY25. Expansion in India, Southeast Asia, and the U.S., coupled with strategic investments in Europe, has fueled this profitability. A key highlight includes Oyo’s acquisition of G6 Hospitality in the U.S., projected to add over INR 630 crore to its EBITDA in the first year post-integration.
Oyo’s focus on sustainable operations has stabilized its valuation at USD 4 billion, a significant recovery from its peak valuation of USD 9 billion in 2021. Recent private funding rounds, including a INR 1457 crore infusion, have strengthened the company’s cash reserves, enabling aggressive market expansion.
As part of its long-term strategy, Oyo aims to leverage its presence in global hospitality markets, particularly in high-growth regions like the U.S. and Southeast Asia. The firm is also tapping into the mid-market travel segment, aligning with its vision to become a global leader in budget and mid-scale accommodation.
source: ET
