Oyo is making a third attempt to go public, aiming for a valuation between U$6 billion and US$7 billion.

Its parent company, Oravel Stays, has invited investment bankers to present proposals next week.

The company plans to file its draft red herring prospectus (DRHP) between August and September 2025.

Oyo’s board and its largest investor, SoftBank, which holds a 40.5% stake, will discuss the IPO plans at a meeting in London next month.

Founder Ritesh Agarwal recently said that OYO achieved profitability, reporting a profit after tax of 623 crore rupee (US$72.9 million) for FY 2024–2025.

This marks Oyo’s third IPO attempt, following two withdrawals in 2021 and 2022, the latest being in May 2024.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ The challenging journey from unprofitable growth to IPO readiness

OYO’s third IPO attempt marks a significant turnaround story in the Indian startup ecosystem.

The company posted a profit of ₹623 crore in FY25, a dramatic shift from its earlier financial trajectory when losses had ballooned from $52 million in FY18 to $335 million in FY19 1.

This transformation follows years of operational restructuring, including measures like laying off 20% of its 12,000 employees in India and exiting 200 cities in 2019 2.

The company’s shift toward premium hotel offerings and the strategic acquisition of G6 (contributing ₹275 crore to revenue) has been instrumental in improving its financial health 3.

OYO’s journey reflects a broader trend in the IPO market, where investors now prefer companies with demonstrated profitability, moving away from the growth-at-all-costs model that previously dominated startup funding.

2️⃣ Major investor influence shapes IPO timing and strategy

SoftBank’s 40.5% stake in OYO gives it significant influence over the company’s public listing plans, illustrating the power dynamics between founders and major investors.

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