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Published on
August 25, 2025
5 min read
OYO Plans November DRHP Filing for Ambitious $7-8 Billion
Indian hospitality giant OYO is preparing for one of the year’s biggest public offerings. OYO plans to submit its DRHP for IPO in November 2025 with a valuation of $7 to 8 billion, Moneycontrol reported.
The proposal for the IPO will be presented before the board next week OYO’s spokesperson said in a statement, “While we cannot comment on any timelines related to OYO’s DRHP or IPO related plans, since it’s a decision that will be guided by OYO’s Board of Directors and will be solely at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for its stakeholders.”
IPO Valuation Target
OYO is seeking a valuation of $7-8 billion for the IPO, positioning it among India’s largest public offerings this year. This valuation reflects the company’s recovery from pandemic-related challenges and renewed growth trajectory.
The target valuation represents a significant jump from OYO’s previous private funding rounds. Market analysts believe the company’s improved financial metrics and operational efficiency justify the ambitious pricing.
The platform has intensified talks with major banking partners in recent weeks, maintaining a valuation guidance of $7–8 billion priced at INR 70 per share, which is roughly 25–30 times its EBITDA.
A person aware of the developments said, “The filing with regulators is being considered for November. Over the past few months, SoftBank has engaged with banks such as Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies in London to assess market sentiment. After assessing market feedback, they are now confident in their decision. The board will be approached next week as the company firms up the details and finalises key strategic elements.”
SoftBank’s Major Exit Opportunity
SoftBank-backed OYO’s IPO represents a major liquidity event for one of the Japanese conglomerate’s largest investments in India. SoftBank has been OYO’s biggest backer since the company’s early growth phase.
SoftBank’s Vision Fund invested billions of dollars in OYO over multiple funding rounds. This IPO provides SoftBank with an opportunity to realize substantial returns on its long-term investment in the hospitality startup.
Other existing investors, including Lightspeed Venture Partners and Sequoia Capital, are also expected to reduce their stakes through the public offering. The secondary share sales will provide these early backers with partial exits.
Strategic Timing for Market Entry
OYO’s IPO launch comes at a time when India’s hospitality sector is experiencing strong recovery momentum. Domestic travel has rebounded significantly, and business travel is approaching pre-pandemic levels.
OYO has strategically timed its market debut to capitalize on improved industry sentiment. The company has also streamlined operations and achieved better unit economics across its key markets.
Q1 and Q2 have shown consistent improvement in OYO’s financial performance. Revenue growth has accelerated while losses have narrowed, creating a compelling investment narrative for potential shareholders.
Substantial Capital Raise Plans
OYO’s IPO funding amount is expected to include both fresh capital and secondary share sales. The company plans to use new funds for technology investments, market expansion, and debt reduction.
Fresh capital will support OYO’s growth plans in existing markets while funding expansion into new geographies. The company has identified several international markets with significant growth potential.
Technology upgrades and digital infrastructure improvements will receive substantial funding allocation. OYO believes these investments are crucial for maintaining its competitive advantage in the rapidly evolving hospitality industry.
Market Reception and Future Prospects
Initial market feedback indicates strong investor interest in OYO’s public offering. The company’s turnaround story and improved fundamentals have generated positive analyst coverage.
Retail investor interest is also expected to be substantial given OYO’s brand recognition and growth story. The company’s widespread presence across Indian cities makes it familiar to millions of potential individual investors.
Success in the public markets could pave the way for OYO’s continued expansion and technology innovation in the hospitality space.
