drashti In the ever-turbulent world of startups, few stories have oscillated between spectacular ambition and nail-biting suspense quite like Oyo’s. And now, the hospitality unicorn is back in the headlines, dusting off its IPO playbook for a third go—with bigger dreams and tighter suits.
According to sources close to the matter, Oravel Stays, the parent company of Oyo, is set to meet with merchant bankers next week to formally kick off its latest attempt to go public. This move comes as the company looks to raise funds at a valuation that would make even seasoned investors pause—somewhere between $5 billion and $7 billion, with certain optimistic bankers whispering figures as high as $10 billion into the pitch decks.
Yes, this isn’t Oyo’s first rodeo. The company’s previous IPO plans—an ambitious ₹8,430 crore proposal in 2021 and a more discreet, confidential filing in 2023—both fizzled out before reaching the finishing line. But this time, the narrative is different. For starters, Oyo has finally turned a profit, reporting a net income of ₹620 crore for FY25. Not just a symbolic win, this profitability milestone has also breathed new life into investor confidence, including major shareholder SoftBank, which holds a substantial 40% stake in the company.
The financial turnaround couldn’t have come at a better time. Founder Ritesh Agarwal, who famously took on a $2.2 billion loan in 2019 to increase his stake in the company, now finds that repayment deadlines are looming like unpaid minibar charges. Reports suggest that ongoing discussions with lenders about extending repayment terms are directly tied to the success of this upcoming IPO. No pressure, of course.
Oyo’s plan is to file its Draft Red Herring Prospectus (DRHP) sometime between August and September this year, aiming to hit the markets with a full-fledged public listing by March or April 2026. While that timeline might feel comfortably distant, there’s plenty riding on the next few quarters—especially in how Oyo manages to sustain growth and control costs across its now-leaner, more focused global operations. The company has streamlined aggressively in recent years, pulling back from less lucrative markets and doubling down on core regions such as India, the United States, Europe, and Southeast Asia.
This IPO, if successful, could mark a crucial inflection point for Oyo—offering a chance to not only raise fresh capital but also to pay off debts and reset the narrative around a company that once symbolized India’s startup swagger, before getting bogged down by expansion headaches and pandemic-induced travel freezes.
With major stakeholders aligned, profits (finally) on the books, and a renewed focus on sustainable growth, Oyo’s third IPO attempt might just be the charm. For those watching the private equity space—or those dabbling in unlisted shares—it’s the kind of comeback tale that could turn into a blockbuster.
After all, in the world of startups, nothing sells like a second act. Or in this case, a third.
