Oyo Rooms has come out to say that the company will not be going public and will be postponing their initial public offering as of now, due to the slump in the market and economy which will reduce the company’s valuation.
The top brass of Oyo Rooms had multiple meetings over the past week and after consulting multiple bankers and financial institutions, they came to the conclusion that it is not the right time for an initial public offering and have decided to keep it aside for now. According to sources close to the company, the people of Oyo Rooms will only be restarting their bid for an initial public offering by the end of year meaning that the company will only go public some time next year.
Oyo Rooms is a start-up that specializes in the country’s hospitality industry. The company leases out homes, rooms, hotel rooms, and many other living spaces for a short period of time. The company was founded 10 years ago, back in 2012 by Mr. Ritesh Agarwal. The company’s head office is situated in Gurgaon, Haryana.
With inflation constantly going up with experts predicting it to go up even more, the coronavirus pandemic, rising oil prices, Russia’s invasion of Ukraine which consequently caused global supply chains to be broken, Oyo came to the realisation that it is not the optimal time to for an initial public offering. If they went on with the initial public offering, it would have likely been one of the most underwhelming initial public offerings in the country considering their size and market share in the hospitality industry.
The company filed for approval to go public and have an initial public offering at a value of $ 1.1 billion USD 9 months ago back in September last year, but it has fallen through since even after getting the green light of approval.
Oyo has now expanded outside of India and has operations in multiple European nations now. The company recently acquired a Croatia’s largest hospitality company and has a stronghold in that country. They also added another company under their wing recently known as Direct Booker. With both acquisitions, the popularity of the Oyo Family is rising in Germany, The Netherlands, Denmark, Austria, Bosnia and Herzegovina, Croatia, Montenegro, Slovenia, Albania, and India of course.
Oyo Rooms would probably need to go public if they are looking to grow and scale their business a lot more but it just wasn’t the right time for an IPO.