Indian Oyo seeks $ 1.2 billion in IPO, sees $ 12 billion valuation

Indian start-up from budget hotel chain Oyo is looking to file an initial public offering as early as next week, people familiar with the matter told TechCrunch, joining a handful of companies in the world’s second-largest market that are trying to explore. public procurement.

The seven-year-old startup, founded by Ritesh Agarwal, 27, plans to raise up to $ 1.2 billion in primary and secondary sales during the IPO and is aiming for a valuation of more than $ 12 billion, said those requesting anonymity to discuss private matters.

The aforementioned conditions could change slightly in the next few days and the start-up could take a few more days to complete the paperwork, the people said.

Like Zomato and a handful of companies, including Paytm and PolicyBazaar, Oyo is considering listing on Indian stock exchanges, one person said. Agarwal does not plan to sell any stakes during the IPO, the person added.

The company, which counts SoftBank, Lightspeed Partners and Airbnb among its investors and was recently valued at $ 9.6 billion, had around $ 780 million to $ 800 million in the bank three months ago (according to Agarwal’s public comment at conference) and raised $ 660 million in debt in July.

Oyo, who recently raised around $ 5 million in a strategic investment from Microsoft, operates in nearly three dozen countries. The startup, one of the South Asian nation’s most valuable, has developed some sort of operating system to help hoteliers accept digital reservations and payments. Oyo, using its technology stack, helps hoteliers determine the best price for a room and helps them discover and integrate with third-party hotel reservation services such as and MakeMyTrip.

Like most other players in the travel and hospitality industry, Oyo has been hit hard by the pandemic, but has recovered significantly in recent months.

Most of the startup’s income today comes from a handful of markets, including India, Malaysia, Indonesia and Europe, which have relaxed their foreclosure restrictions as more people walk away. get vaccinated.

In an interview with Bloomberg TV in July, Agarwal said the startup “was already operating as a state-owned company,” but declined to say whether it was looking to be listed anytime soon. The company has not made any further comment on an IPO plan.

The story was updated at 3:26 p.m. IST Friday with the details of the assessment.

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