Oyo’s road to the stock market continues to face unexpected turns. The Gurugram-based hospitality startup has once again put a pin in its long-anticipated IPO, this time at the request of its biggest backer—SoftBank.
According to a Bloomberg report, SoftBank has voiced concerns about the timing of the public offering and asked Oyo to hold off until the company can demonstrate more solid and consistent earnings. This marks the third delay in Oyo’s IPO journey, which initially began in 2021.
The latest IPO filing included plans for a fresh issue worth Rs 7,000 crore, along with an Offer for Sale (OFS) of Rs 1,430 crore. But despite showing promising signs of profitability, the company is still being advised to wait.
Just last quarter (October to December 2024), Oyo reported a six-fold jump in net profit to Rs 166 crore, on the back of Rs 1,695 crore in revenue—a 31% increase year-on-year. In the previous financial year (FY24), Oyo had turned profitable for the first time, posting a net profit of Rs 230 crore. However, its annual revenue dipped slightly to Rs 5,389 crore from Rs 5,464 crore the year before.
Back in May 2024, Oyo also pulled its draft IPO documents that included plans to raise up to $450 million via dollar bonds. Its original IPO application, filed in 2021, was returned by the market regulator in early 2023, underscoring the bumpy road the company has faced trying to go public.
With SoftBank’s concerns front and center, Oyo now finds itself in a familiar position—waiting, reassessing, and hoping that stronger numbers in the quarters ahead will finally clear the path to its debut on the stock exchange.
