Oyo Rebrands as Prism Ahead of $6–7 Billion IPO, Eyes Global Expansion and Stronger Financials

Oravel Stays, the parent company of Oyo, has rebranded itself as Prism. This change aims to better represent its extensive global portfolio, which includes hotels, vacation homes, and coworking spaces. The company is gearing up for its third attempt at an initial public offering (IPO), targeting a valuation between $6 billion and $7 billion.

Prism's portfolio extends beyond Oyo to include hotel brands like Motel 6, Townhouse, Sunday, and Palette. It also encompasses vacation homes under Belvilla, DanCenter, CheckMyGuest, and Studio Prestige. Additionally, the company operates in extended stay, coworking, and celebration space segments.

Financial Performance and IPO Plans

In FY24, Oyo achieved a net profit of Rs 229 crore after a previous loss of Rs 1,286 crore. Despite this turnaround, operational revenue slightly decreased by 1.4% to Rs 5,389 crore from Rs 5,464 crore the year before. For FY25, it is estimated that Oyo posted a net profit of Rs 620 crore.

The company plans to file a draft red herring prospectus (DRHP) with market regulators in November for its upcoming IPO. This will be Prism's third attempt at going public. Earlier efforts in 2021 and 2023 were withdrawn due to various reasons.

Strategic Investments and Funding

Last August, Oyo secured Rs 1,457 crore from a group of investors at a valuation of approximately $2.5 billion. This was significantly lower than its peak valuation of $9 billion. In December, it raised $825 million in debt from Deutsche Bank to fund the acquisition of US motel chain Motel 6 for $525 million.

"The transition to Prism marks the establishment of a future-ready corporate architecture designed to align our expanding portfolio with our long-term vision," said Ritesh Agarwal, founder and group chief executive.

Prism now serves over 100 million customers across more than 35 countries worldwide. The rebranding reflects its commitment to aligning its diverse offerings with its strategic goals for growth and expansion on a global scale.

As Prism prepares for its IPO filing in November, it continues to focus on strengthening its financial position and expanding its market reach through strategic investments and acquisitions.