Oyo is making another attempt to revive its IPO plans after two previous attempts were halted. The hospitality giant is preparing to file its draft red herring prospectus (DRHP) by the end of the first quarter of FY25, marking its third effort to go public as it aims to capitalize on a profitable year and ongoing restructuring efforts.
Sources reveal that the IPO comes after a reshuffle in Oyo's ownership structure, with founder Ritesh Agarwal taking strategic steps, while early investors like Lightspeed Venture Partners are likely to sell off their stakes. The company posted a profit of 229 crore rupees for FY24 and 132 crore rupees for Q1 FY25, signaling strong potential for its public offering.
As Oyo prepares for its market debut, it is also making headlines for a new policy targeting unmarried couples. Starting in January, Oyo requires couples to provide proof of their relationship before checking into partner hotels in Meerut. This means that even online bookings now need proper documentation. Hotels are allowed to reject bookings from couples, with the company citing "local social sensibilities" as the rationale behind the policy.
From now onwards, the policy is confined to Meerut, but there’s some conjecture it could be applicable to other cities. As Oyo readies itself for a public offering, it seems the company is trying to balance financial goals with staying in tune with or perhaps, just responding to- the social climate.
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