Oyo Hotels, a hospitality startup based in India, is planning to launch its IPO on Indian stock exchanges within the next six to twelve months. The Gurugram-based company, led by Ritesh Agarwal, has reported consistent profitability over the past eight quarters, marking a significant turnaround. Oyo, which recently acquired the U.S.-based Motel 6, expects the acquisition to boost its financial performance, with EBITDA projected to surpass ₹2,000 crore by 2025-26.
Oyo Hotels, a leading Indian hospitality startup headquartered in Gurugram, Haryana, is preparing to list on Indian stock exchanges within the next six to twelve months. The company, founded by Ritesh Agarwal, has recorded eight consecutive profitable quarters, with its net profit for FY24 reaching ₹229 crore, marking a full-year profit for the first time in 12 years.
According to sources close to the matter, Oyo is planning to file for an IPO within the next two to four quarters. “We want to show a few more quarters of stable profitability before finalizing our IPO plans,” an insider stated.
Oyo’s Financial Turnaround
Oyo, which operates a global network of budget hotels and accommodations, has demonstrated a remarkable financial turnaround in recent years. The company reported a profit after tax of ₹229 crore in FY24, a significant improvement from a loss of ₹1,286 crore in FY23. Its quarterly profits for FY25 have also been strong, rising from ₹132 crore in Q1 to ₹158 crore in Q2 and further to ₹166 crore in Q3.
The company’s recent acquisition of Motel 6, a well-known budget hotel chain in the U.S., is expected to contribute significantly to its revenue. Oyo anticipates that the integration of Motel 6 will add ₹630 crore to its EBITDA in the next financial year. The company’s overall EBITDA is projected to exceed ₹2,000 crore by 2025-26.
Oyo’s IPO Journey
This is not Oyo’s first attempt at going public. In 2021, the company had initially filed for an IPO, but its draft application was returned by the Securities and Exchange Board of India (SEBI) in January 2023. Oyo later refiled with a revised offer, reducing the IPO size, but withdrew its application in May 2024.
The company is now expected to refile its IPO papers with SEBI after refinancing its existing $450 million Term Loan B (TLB) at a lower interest rate. Reports indicate that Oyo is expediting its IPO plans due to a year-end debt repayment deadline. However, Oyo has denied rumors of restructuring and financing arrangements, calling them speculative.
With strong financial backing and an improved profitability record, Oyo is now well-positioned to make its public market debut. The hospitality sector and investors will be closely watching the developments as the company finalizes its IPO plans.
