The company had confidentially filed its draft IPO (initial public offering) papers in December, marking its third attempt to go public. Sebi had returned its first IPO application in 2021, asking the company to refile with updated financials. Oyo subsequently submitted a revised application for a significantly smaller issue. While the Gurugram-based company had initially proposed a $1.2-billion IPO, its latest confidential filing is for an issue that is 40-60% smaller.
The development was first reported by PTI.
In 2024, Oyo withdrew its draft prospectus and instead opted to raise private capital.
Sebi’s approval comes at a time when several new-age companies have lined up IPOs, but volatile market conditions and continued foreign institutional investor outflows have prompted many to reassess their plans. Walmart-owned PhonePe and Flipkart have both deferred their listing timelines. PhonePe had already secured Sebi’s approval and filed an updated prospectus. Quick commerce firm Zepto remains an exception and is expected to file its updated DRHP within the next 8-10 days, according to people familiar with the matter.
Oyo is targeting a valuation of around Rs 50,000-60,000 crore ($5-7 billion) for its public offering, one of the sources said, adding that the final valuation will depend on market conditions. In 2024, the company raised capital at a valuation of $2.3 billion, well below its peak valuation of $9 billion during a 2021 funding round led by Microsoft.
In the April-June 2025 quarter, Oyo posted a net profit of more than Rs 200 crore, ET had reported citing an email sent by founder and chief executive Ritesh Agarwal to the company’s management committee and shareholders in September. According to that, Oyo’s profit more than doubled on-year from Rs 87 crore in the corresponding quarter of the previous fiscal year.
The company has also been expanding its international presence through acquisitions. In 2024, it acquired G6 Hospitality, the operator of the Motel 6 chain in the US, for $525 million.