OYO Eyes Third IPO Attempt, Targeting $6–7 Billion Valuation

May 27, 2025

Share this post :

OYO, the hospitality startup founded by Ritesh Agarwal, is reportedly reviving its IPO ambitions with a fresh listing plan targeting a valuation of $5–7 billion. After two previous attempts to go public, the SoftBank-backed company is expected to meet bankers next week to initiate the third round, with the goal of listing as early as the fourth quarter of FY25.

The renewed IPO push comes amid signs of improved financial performance and a focus on profitability.

First Attempt (2021): Market Conditions and Tech Stock Meltdown

OYO filed its first draft red herring prospectus (DRHP) with SEBI in October 2021, aiming to raise ₹8,430 crore (~$1.1 billion). However, by early 2022, global tech stocks started facing a sharp correction due to rising interest rates, inflation concerns, and investor skepticism around overvalued startups.

Second Attempt (2023): Profitability Concerns and SEBI Pushback

In 2023, OYO refiled with a reduced issue size and updated financials. But this time, SEBI reportedly raised queries regarding OYO’s financial health, especially its past losses and unclear path to sustained profitability. The startup eventually withdrew the application once again.

OYO’s Third IPO Attempt: What’s Different This Time?

Unlike its earlier filings in 2021 and 2023, OYO’s latest IPO attempt seems more strategically timed. The company is said to have reduced its cash burn significantly and is inching closer to profitability, which makes it a more attractive prospect for investors. Additionally, the proposed valuation range of $5–7 billion is a recalibrated target—lower than earlier expectations but more realistic in the current market environment.

Bankers are expected to finalize the IPO structure and book-building process over the coming months.

Path to Profitability and Focus on Core Markets

In recent quarters, OYO has been streamlining its operations by exiting non-core geographies and doubling down on profitable markets like India, Indonesia, and select parts of Europe.

The company’s cost optimization measures and leaner structure have contributed to narrowing losses. With a focus on mid-market and premium hotels, as well as technology-driven property management, OYO is betting on a scalable and sustainable business model that can deliver long-term value to shareholders.

As OYO prepares for its third IPO attempt, the company appears more mature, financially disciplined, and better aligned with market expectations. If the offering goes through as planned, it could set a benchmark for Indian startups seeking public listings in a post-correction era.