NS softbank Group-backed hospitality startup was valued at $9 billion
After “Strategic Investing” By Microsoft Corp. last month
People said Oyo is looking to raise anywhere between $1 billion and $1.2 billion by issuing fresh stock in a massive IPO. Existing investors will sell some stake through an offer for sale, but Agarwal is unlikely to sell any stake. He has over 30% stake in Oyo’s parent Oravel Stages.
“OYO is looking at a valuation of over $12 billion, but is looking at anywhere between $12-$15 billion. It wants to price it in such a way that investors can also post listing profit after the IPO,” said one of the people above.
On September 23, ET reported Oyo. reported to
can file its draft red herring prospectus As soon as next week. Sources said the company is keen to file its DRHP before the end of the month, but there is a possibility that the process may end by early October.
An Oyo spokesperson declined to comment for this story.
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NS Oyo IPO This comes at a time when several top-end startups-Paytm, PolicyBazaar, Nykaa, PharmaEasy, Delhivery, Flipkart, Ola, etc. have either applied for initial share sale or are in the process of doing so. In July, Zomato became the first consumer internet company in India to be listed on domestic stock exchanges after a spectacular IPO.
Oyo’s listing plans also come amid a sharp recovery in the hospitality sector which was crippled by the pandemic. After withdrawing from several global markets, 90% of OYO’s total hotels or “storefronts” are now in India, Southeast Asia and Europe. It has also completely phased out the “minimum guarantee” concept for its hotel partners, where it promised them a minimum monthly payment regardless of occupancy rates.