As OYO sets the stage for its long-anticipated public debut, the travel-tech company is preparing for a crucial investor meeting with its largest shareholder, SoftBank, in London this June. This high-stakes engagement could prove decisive in shaping the company’s IPO trajectory, valuation benchmarks, and market positioning. With over 40% ownership, SoftBank’s stance could either accelerate OYO’s public market entry — or delay it further.
In this article, we will delve into OYO’s strategic push for an IPO, its critical meeting with SoftBank in London, and what this could mean for the company’s future in the public markets.
Credits: CNBC TV18
A London Summit with High Stakes
The upcoming meeting, to be held at SoftBank’s prestigious Grosvenor Street office in London, isn’t just another investor catch-up. It marks a pivotal moment in OYO’s journey toward a public listing that has seen multiple delays and shifts in valuation.
Set to attend the meeting are SoftBank Vision Fund’s India head and Managing Partner Sumer Juneja, OYO’s founder and Group CEO Ritesh Agarwal, and senior leadership from both sides. Sources close to the matter describe the engagement as “mission critical” for OYO, which is now seeking renewed investor confidence for a $400–600 million IPO.
A Five-Bank Powerhouse to Woo SoftBank
In a move that signals serious intent, OYO has roped in a formidable consortium of five investment banks to lead the IPO pitch. The global bigwigs — Citi, Goldman Sachs, and Jefferies — are teaming up with Indian powerhouses ICICI Securities and Axis Capital.
Together, these banks are expected to present a comprehensive roadmap covering market sentiment, investor appetite, and comparative benchmarks to justify OYO’s anticipated valuation. The presentation will also highlight the company’s operational turnaround, revenue growth, and potential for debt reduction post-listing — key selling points for skeptical stakeholders.
From a $10 Billion High to a $2.5 Billion Reality
OYO’s journey has been anything but linear. Once the poster child of India’s startup boom, the company commanded a near-$10 billion valuation in 2019 — shortly after Ritesh Agarwal spearheaded a massive $2 billion buyback of shares from existing investors, with financial backing from SoftBank.
However, since then, the pandemic-induced travel slump, restructuring efforts, and tighter investor scrutiny have seen OYO’s valuation tumble to around $2.5 billion. The company had initially filed for a ₹8,430 crore (~$1 billion) IPO in 2021, but had to hit pause as global markets turned volatile.
Refiling its Draft Red Herring Prospectus (DRHP) confidentially in April 2023, OYO now appears more cautious but committed, with a scaled-down fundraising target of $400–600 million.
SoftBank’s Vote of Confidence: The Deciding Factor?
SoftBank’s role is more than financial — it’s symbolic. As OYO’s biggest backer and an early believer, SoftBank’s support could serve as a market signal that the company is back on track. Sources suggest the Japanese investment giant is evaluating OYO’s operational metrics, potential listing timelines, and whether current public market conditions are conducive to a successful debut.
One insider summed it up best: “SoftBank continues to back its portfolio companies that have shown strong operational recovery. A primary issue would allow OYO to retire part of its debt, immediately boosting EPS.”
This suggests that if SoftBank is convinced, the path to IPO could be greenlit as early as late 2025 — provided broader market conditions remain stable.
Credits: Bloomberg
What’s Next?
All eyes are now on London, where OYO’s leadership and its army of bankers will try to win over their most important ally. If successful, the company may not only reclaim lost ground but also prove that its ambitious global vision — from budget hotels in India to vacation homes in Europe — still has fuel in the tank.
For now, OYO’s future hangs in the balance, and the London meet could be the turning point it has been waiting for.
