OYO (Oravel Stays), the Indian hospitality-tech unicorn, is once again preparing for a public listing. After multiple attempts and strategic restructuring, the company now stands on the threshold of a profitable era, with signals pointing to Oyo IPO in 2026 at a valuation in the USD 7-8 billion (~INR 71,000 crore) range. Below is a detailed saga of its journey, financials, strengths, risks, and what lies ahead.
💰 Oyo IPO Updates: Highlights & Expectations
| Parameter | Details / Estimate |
|---|---|
| Oyo IPO Dates | 2026 (potential filing in late 2025) |
| Oyo IPO Valuation | Expected USD 7-8 billion (INR 60,000-71,000 crore) |
| Offer Mix | Combination of new issue + offer for sale (OFS) by existing shareholders |
| Lead Bankers | Axis, ICICI Securities, Goldman Sachs, Citi (in talks) |
| Use of Funds | Debt reduction, strengthening balance sheet, scaling premium portfolio, global expansion |
| Key Shareholders | SoftBank (largest promoter stakeholder), founder Ritesh Agarwal, other institutional investors |
Latest Oyo IPO News
Latest Oyo IPO News: EGM on 20 December, Proposal For IPO
Prism, Oyo’s parent company, has called an EGM on 20 December 2025 to seek approval for an INR 6,650-crore IPO. The company has also proposed a revised bonus issue, offering 1 bonus share for every 19 held, with 5 December as the record date. Additionally, shareholders will vote on increasing the authorised share capital from INR 2,431 crore to INR 2,491 crore.
Sunday PropTech Raised INR 125 Cr, Plans 12 New Hotels
Sunday PropTech, also known as Oyo Assets and backed by PRISM, has raised INR 125 crore in a funding round led by InCred. The company plans to use this capital to acquire 12 new hotels, with negotiations for 7 already in advanced stages. Sunday PropTech focuses on purchasing, developing, and professionally managing premium and mid-premium hotels across major tourist and business cities in India. The investment will help expand its portfolio under brands like Sunday Hotels, Palette Hotels, Townhouse, and select U.S. brands, strengthening its presence and asset-management capabilities in the growing hospitality sector.
Deutsche Bank Refinanced USD 150 Mn Loan
Deutsche Bank has refinanced about USD 150 million (~INR 1,330 crore) of a USD 350 million (~INR 3,150 crore) loan originally given by Mizuho Bank to help Oyo founder Ritesh Agarwal buy company shares. The remaining amount was repaid by his entity, RA Hospitality. This refinancing reduces pressure on Agarwal and allows him to focus on the upcoming Oyo IPO, expected next year, with a valuation of USD 7–8 billion (~INR 71,000 crore). Oyo’s parent company, now renamed Prism, has reported 14 consecutive quarters of positive adjusted EBITDA and continues expanding its use of AI to improve pricing and property management.
November 2025: Bonus Proposal Withdrawn
OYO’s parent company, PRISM, has withdrawn its earlier 6,000:1 bonus share proposal after receiving investor backlash over its complexity and limited eligibility. The company plans to introduce a simpler bonus structure that will ensure fair and equal participation for all shareholders, including both equity and CCPS holders. The move reflects OYO’s commitment to transparency, fairness, and long-term value creation ahead of its IPO.
September 2025 — Oyo IPO Plans Revisited Amid Market Moves
OYO has reinitiated discussions with investment bankers to finalize the structure, timing, and valuation of its long-awaited IPO. Reports indicate the company is working with advisors including Axis Capital, Goldman Sachs, and JM Financial to prepare a draft plan for market entry. The offering is expected to be a hybrid IPO — combining a fresh issue of shares to raise new capital and an offer-for-sale (OFS) by early investors such as SoftBank and Lightspeed.
Early valuation discussions suggest a USD 7–8 billion (~INR 60,000–71,000 crore) range, subject to market sentiment and board approval. OYO has also begun IPO readiness audits, corporate restructuring reviews, and investor outreach programs to ensure compliance and transparency ahead of filing.
The company aims to complete internal documentation by late 2025, targeting a listing in the first half of 2026 if regulatory conditions remain favorable.
Oyo IPO Dates: August 2025
Oyo’s parent Oravel Stays plans a 1:1 bonus issue, rewarding shareholders listed by 30 Sept 2025. The move follows two years of profits, funded via reserves. Oyo unlisted shares rose 25% last month. Oyo also restarts IPO plans, targeting renewed profitability and expansion across India, US, and Asia.
May 2025 — SoftBank Opposition Delays Oyo’s Third IPO Attempt
In May 2025, SoftBank, OYO’s largest shareholder, reportedly blocked the company’s third IPO filing attempt, citing misalignment on valuation expectations and macro market risks. SoftBank’s concerns led to a postponement of the DRHP submission initially planned for mid-2025. This decision marked the third delay in OYO’s listing efforts since 2021 and underscored ongoing investor caution about the company’s business fundamentals and global exposure.
Following this, OYO’s management shifted focus back to profitability consistency and debt reduction, deferring formal filing until financial performance stabilized.
Oyo Q1 FY26 — Profitable Quarter and Strong Growth Momentum
In the first quarter of FY26, OYO delivered one of its strongest performances yet — posting a profit after tax (PAT) exceeding INR 200 crore, compared to INR 87 crore in Q1 FY25. Revenue rose 47% year-on-year to INR 2,019 crore, while EBITDA reached INR 550 crore, backed by sustained growth in premium and international markets.
Gross Booking Value (GBV) jumped 144% YoY to INR 7,227 crore, indicating significant improvement in occupancy and pricing across OYO’s global network. Ahead of the IPO, the company’s board also approved a 1:1 bonus share issue to reward shareholders and signal confidence in the business outlook.
April–July 2025 — PRISM Rebranding and Leadership Realignment
OYO’s parent entity, Oravel Stays, underwent a major transformation — rebranding itself as PRISM to reflect its evolution beyond hospitality into technology, data, and real estate solutions. The company announced a leadership restructuring, promoting Ankit Tandon to Global COO and Head of Europe Operations to drive its international expansion strategy.
In parallel, PRISM launched “CheckIn by OYO”, a premium brand vertical consolidating Townhouse, Palette, and Sunday Hotels under one luxury-oriented platform — positioning the company for higher-margin growth.
FY25 — First Full-Year Profit
For FY25, OYO reported its first-ever full-year consolidated net profit of INR 244.8 crore, supported by deferred tax credits and one-time accounting gains. Excluding these adjustments, the company would have recorded a pre-tax loss of INR 489.3 crore, reflecting ongoing cost pressures.
Revenue from operations rose 16% year-on-year to INR 6,252.8 crore, led by improved India occupancy and stronger traction in Europe and Southeast Asia. However, overseas expansion and property acquisitions, such as Motel 6 and European vacation rentals, added financial strain even as they boosted scale.
Oyo IPO News (2024): Withdrawal & Credit Rating Upgrade
In May 2024, OYO withdrew its DRHP filing for the second time, citing “material structural changes” and planned refinancing. Later that year, OYO received a credit rating upgrade from ICRA following improved liquidity management, stable cash flows, and reduction of short-term debt obligations. The company refinanced parts of its foreign borrowings, reducing finance costs and demonstrating progress in balance sheet optimization ahead of future listing efforts.
2023 — Financial Cleanup and Debt Paydown
OYO undertook a major balance sheet cleanup in 2023, repaying over INR 1,600 crore in debt from internal accruals. This reduced leverage to below 1.5x, signaling a more sustainable financial structure. The company also improved occupancy rates and per-property revenue, aided by strong domestic demand recovery and operational automation. Oyo IPO ambitions were deliberately deferred to consolidate profits and strengthen fundamentals.
2022 — Strategic Restructuring and Governance Strengthening
Following pandemic headwinds, OYO initiated a broad organizational restructuring program, rationalizing underperforming assets and reducing operational costs. Governance frameworks were overhauled — the company upgraded internal controls, compliance mechanisms, and auditor oversight (led by Deloitte) to align with SEBI norms.
By late 2022, OYO had returned to moderate growth, with a leaner portfolio focused on profitable regions and asset-light partnerships.
Oyo IPO News (2020–21) — COVID Impact and Early IPO Attempts
The pandemic caused OYO’s global occupancy to plunge from ~65% to ~25%, leading to layoffs of around 5,000 employees across markets. The company rebuilt operations in India through self-onboarding hotel technology and automation-led partner management.
In October 2021, OYO filed its first Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 8,430 crore IPO — but the filing was put on hold following regulatory feedback and market uncertainty.
2019 — Peak Valuation and Overexpansion
At the height of its global expansion, OYO reached a USD 10 billion valuation following a USD 1.5 billion SoftBank-led funding round, becoming one of India’s most valuable startups. The company rapidly scaled into 80+ countries, including the U.S., Europe, and Southeast Asia, and briefly ranked as the third-largest hotel chain globally by room count.
However, this aggressive growth also led to operational inefficiencies, partner disputes, and cash flow strain, triggering the need for a later strategic reset.
2013–2018 — The Origin of Oyo
OYO was founded in 2013 by Ritesh Agarwal as a technology-first hotel aggregation platform in Gurgaon. Between 2015 and 2018, OYO raised successive rounds from Lightspeed Venture Partners, Sequoia Capital, and SoftBank Vision Fund, fueling its rapid national expansion.
The company pioneered the asset-light franchise model, allowing hotel partners to adopt OYO branding and tech infrastructure while OYO earned commission-based revenues — a model that redefined India’s budget hospitality sector.
Business Strategy & Transformation
- Asset-light model — OYO does not own most properties; it partners with hotel owners (franchise or operating model) and earns commissions/royalties.
- Global expansion — Through acquisitions and partnerships, OYO now operates across 35+ countries, including the U.S. acquisition of Motel 6 / Studio 6.
- Premium push — PRISM (OYO’s parent entity) launched CheckIn vertical to consolidate premium brands (Sunday Hotels, Palette, Townhouse) under a stronger identity. PRISM recently raised INR 50 crore for Sunday PropTech, expanding its premium hotel portfolio ahead of IPO.
- Leadership changes: Ankit Tandon promoted as COO & Europe head, aligning with PRISM’s global priorities.
⚖️ Strengths, Risks & IPO Outlook
Strengths:
- Brand recognition and extensive global footprint
- First full-year “profit” under its belt (albeit aided by credits)
- Diversified offerings: Hotels, Homes, Premium verticals
- Parent restructuring & strategic capital raising for premium expansion
Risks & Caveats:
- Profitability depends heavily on non-operational gains; core operations may still be cash-negative.
- High debt and finance costs remain a burden; FY25 finance cost was INR 959 crore.
- Delays in IPO application / DRHP due to internal governance or shareholder differences — SoftBank is reported to have opposed earlier attempts.
- Regulatory environment, variable global travel cycles, macro shocks can affect hospitality flows.
Oyo IPO Dates & Outlook
- Reports indicate OYO may refile DRHP in November 2025, targeting listing in 2026.
- The board is expected to approve the IPO plan in months ahead.
- SoftBank’s stance is critical; its consent could unlock or stall plans.
Conclusion
OYO IPO journey has been long and iterative. While prior attempts faltered under poor market timing and regulatory feedback, the company’s transformation — turning profitable (even if aided by tax adjustments), cleaning up debt, refocusing on premium verticals, and reorganizing under PRISM — suggests renewed resolve.
If OYO deliver consistently strong earnings and maintain capital discipline, its listing could become one of India’s landmark tech-hospitality public offerings. But investors will watch closely — after years of promise, Oyo IPO must prove execution over hype.
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