After two failed attempts and years of speculation, hospitality tech giant OYO is reigniting its ambitions to go public. The company, founded by Ritesh Agarwal, plans to submit its draft red herring prospectus (DRHP) to SEBI between August and September 2025, aiming for a market debut in Q4 of FY26 (January–March 2026). If successful, this will mark the company’s third and most serious IPO attempt—backed by stronger financials, clearer legal standing, and a strategic nudge from its biggest investor, SoftBank.
Credits: Startuptalky
A Billion-Dollar Valuation in Sight
According to reports from credible sources, OYO has resumed preliminary discussions with multiple investment banks who believe the company could command a valuation between $6 billion and $7 billion in the public markets. This reflects renewed investor confidence in OYO’s operational efficiency and financial turnaround.
A key meeting is scheduled for next month in London between OYO’s board and SoftBank executives, where IPO strategies and timelines are expected to be finalized. SoftBank owns over 30% of the company and holds significant influence over its strategic direction.
Third Time’s (Hopefully) the Charm
OYO has had a bumpy road to the IPO market. The company first filed its DRHP in 2021, aiming to raise ₹8,430 crore, but the plan was later put on hold due to market volatility and regulatory concerns. A revised plan in 2024 was also scrapped.
Earlier this year, OYO reportedly aimed for an October 2025 listing. However, SoftBank advised postponement, citing better market conditions and stronger business fundamentals by early 2026. The company now eyes a Q4 FY26 listing, aligning with internal targets and investor expectations.
A Profit-Making Turnaround
Perhaps the most compelling reason behind OYO’s revived IPO interest is its financial resurgence. The company reported a profit of ₹623 crore in FY25, up by a staggering 172% year-on-year. Revenue also climbed by 20% to ₹6,463 crore, largely driven by its premium hotel portfolio and global expansion across the US, Europe, Southeast Asia, and India.
This profit milestone is significant, considering the years of losses and restructuring OYO has undergone. It demonstrates that the company is now operating on solid financial footing, a crucial checkbox for public market investors.
Clearing the Legal Decks
In May 2025, the Delhi High Court ruled in favour of OYO in its long-drawn legal battle with Zostel Hospitality, the parent company of ZO Rooms. The court overturned a prior arbitral award, stating that no legally binding acquisition agreement ever existed between the two firms.
This verdict provides much-needed legal clarity and removes a major hurdle that could have derailed IPO plans. OYO is now free from the overhang of ownership disputes and potential shareholding claims, clearing the runway for its public listing.
Debt Deadlines and Shareholder Pressure
Behind the scenes, CEO Ritesh Agarwal is under pressure to deliver on the IPO front, not just for growth but also for personal financial reasons. In 2019, Agarwal took out a $2.2 billion loan to increase his stake in the company. The loan was backed by a personal guarantee from SoftBank founder Masayoshi Son.
With a $383 million repayment due in December 2025, the IPO becomes not just a growth milestone but a financial necessity for Agarwal. The clock is ticking, and listing on the public market could ease repayment burdens while strengthening the company’s capital structure.
Credits: The Economic Times
The Road Ahead
As OYO sets its sights on the public markets once again, the convergence of profitability, investor interest, legal clarity, and strategic urgency makes this attempt feel far more grounded than the previous ones. Whether the market will reward OYO’s long journey of pivots and perseverance remains to be seen.
But one thing is clear: for Ritesh Agarwal and his company, the IPO bell is ringing louder than ever before.
