The long-awaited OYO IPO appears to be moving closer to reality. According to multiple reports published on 25th August 2025, the hospitality and travel-tech company is preparing to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in November. Sources indicate that OYO is targeting a valuation of USD 7–8 billion. The proposal is expected to be placed before the board of directors in the coming week, with SoftBank, OYO’s largest shareholder, playing an active role in guiding the process.
This development represents the third major attempt at a listing for OYO, and the difference this time lies in its financial performance and strategic positioning. After years of challenges, the company is finally entering public markets with consistent profitability and a stronger business model.
Understanding OYO’s position today
OYO, founded by Ritesh Agarwal in 2013, started as a budget hotel aggregator before evolving into a full-fledged global travel-tech platform. Over the years, it has built a presence across 22,700 hotels and nearly 1,20,000 homes, while also adding over 91,000 listings worldwide. Its model blends technology, property management, and hospitality services, making it one of the largest players in the segment globally.
For years, OYO was associated with rapid expansion and heavy losses. Its private valuation peaked at USD 10 billion in 2019, despite ongoing losses. However, public market scrutiny has forced a tighter focus on profitability, resulting in a downward revision of its IPO valuation target. The current range of USD 7–8 billion reflects market realities but also highlights how far the company has come in turning its operations around.
OYO’s financial turnaround in FY25
The financial year 2024–25 marked a major shift for OYO. The company reported a profit after tax (PAT) of ₹623 crore, a sharp 172% increase compared to the ₹229 crore earned in FY24. This makes OYO the most profitable Indian startup for the year, a remarkable turnaround from its earlier struggles.
Its adjusted EBITDA rose 27% year-on-year to ₹1,132 crore, supported by strong operating discipline and growth across premium segments. Earnings per share (EPS) also surged from ₹0.36 in FY24 to ₹0.93 in FY25, reflecting a 158% rise.
Topline growth has been equally strong. Revenue grew 20% year-on-year to ₹6,463 crore, while Gross Booking Value (GBV) jumped 54% to ₹16,436 crore. In Q4 FY25 alone, OYO posted ₹1,872 crore in revenue, up 41% from the same quarter in FY24, with EBITDA rising 61% to ₹442 crore.
This consistent profitability, ten straight quarters of positive EBITDA, gives the OYO IPO much stronger credibility compared to its earlier attempts.
Recent OYO developments shaping the IPO
OYO’s story in 2025 has been defined not only by its financial performance but also by strategic moves to strengthen its portfolio:
- Acquisition of MadeComfy (4 August 2025): OYO acquired the Australian proptech firm for over $50 million. MadeComfy will continue under its own brand with co-founders staying on as co-CEOs. This move bolsters OYO’s international presence and enhances its property management capabilities.
- Plans for a third IPO attempt (28 May 2025): After turning profitable, OYO announced a fresh IPO plan at a valuation of $6–7 billion, even as it continued to face delays linked to SoftBank’s cautious stance.
- SoftBank-driven postponement (3 May 2025): OYO’s IPO was delayed earlier this year based on SoftBank’s advice, pushing the potential listing timeline towards March 2026. The renewed filing plans in November indicate a shift in sentiment after improved financial results.
- Parent rebranding (31 May 2025): OYO is considering a new name for its parent entity, Oravel Stays Limited, ahead of the IPO. Founder Ritesh Agarwal even crowdsourced suggestions, offering a ₹3 lakh reward and a chance to meet him. This rebranding is expected to unify the company’s growing portfolio and strengthen its market identity.
- Global expansion: The company continues to invest in its overseas operations. It appointed Sonal Sinha as CEO of its US subsidiary G6 Hospitality in March 2025 and committed $10 million towards enhancing its digital infrastructure.
These moves, combined with the rollout of a new premium hotel app and expansion of its Sunday Hotels brand, indicate a sharper focus on high-value segments that can drive sustainable margins.
What the OYO IPO could mean for investors
For retail investors in India, the upcoming OYO IPO is a significant event. Unlike previous attempts, this time the company has profitability, growth momentum, and a clearer strategy on its side. A valuation of USD 7–8 billion may look modest compared to its 2019 peak, but it reflects a more realistic picture that public markets are likely to accept.
If the IPO proceeds as planned in November, investors will be looking at a hospitality-tech company that has achieved scale, profitability, and a degree of operational maturity. The role of SoftBank, still the largest shareholder, will remain critical in shaping the listing.
At the same time, risks cannot be ignored. The hospitality industry is inherently cyclical, global expansion carries execution challenges, and may still raise concerns in volatile markets.
Yet, for many, this IPO represents more than just a listing. It signals the shift of Indian startups from growth at all costs to profitability and sustainability. OYO, once seen as a cash-burning unicorn, is positioning itself as a profitable, globally diversified hospitality-tech player ready to meet the scrutiny of public markets.
Just as the OYO IPO reflects how Indian startups are pivoting from growth-at-all-costs to profitability and sustainability, our last blog on the Gaming Bill highlighted the opposite trend, how regulatory changes can suddenly cool down even the hottest sectors. If you haven’t read it yet, check out the full blog here.
With OYO gearing up for its long-awaited listing, investors are paying close attention to shifts in valuations, sectoral trends, and market cycles. We regularly share such Pre-IPO updates, analysis, and exclusive deal insights in our WhatsApp Investor Community. Click here to join the club.
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