OYO IPO: Files Papers To Raise Rs 8,430 Crore In IPO

Oyo Hotels & Homes, a hospitality startup, has filed a draught prospectus with capital market regulator Sebi in order to raise $1.2 billion through a public offering, joining a rising number of businesses that are tapping into the public markets.

Oyo intends to issue up to 70 billion rupees worth of new shares, while existing shareholders may sell up to 14.3 billion rupees worth of shares.

SoftBank Vision Fund, Lightspeed Venture Partners, and Sequoia Capital India are among the company's major backers.

OYO is valued at $9.6 billion as of August 20, 2021, after raising $5 million from Microsoft. According to the prospectus, the promoters include founder Ritesh Agarwal, his holding firm RA Hospital Holdings, and SoftBank Vision Fund, the three largest owners. According to reports, the business named Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura, and Bank of America as primary book managers for the public offering last month.

By early next year, the company is likely to be listed on Indian stock exchanges.

OYO background

Ritesh Agarwal founded Oravel Stays in 2012 to facilitate the listing and booking of low-cost hotels. In May of 2013, he flipped Oravel to OYO after months of research and experience in numerous bed and breakfast homes, guest houses, and small hotels around India.

OYO collaborates with hotels to provide world-class guest experiences in locations across the world. Ritesh Agarwal earned a $100,000 Thiel Fellowship grant from Peter Thiel shortly after starting Oravel Stays, which tremendously aided in the development of his company.

Over the years, the company grew to include thousands of hotels, vacation homes, and millions of rooms in hundreds of cities across India, Malaysia, the United Arab Emirates, Nepal, Brazil, Mexico, the United Kingdom, the Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, and the United States, among others. It is even more valuable than the renowned Taj hotel company and the Oberoi hotel chain.

Funding Details

Date	Stage	Amount	Lead Investors
August 20, 2021	Corporate Round	$5M	Microsoft
July 29, 2021	Corporate Round	-	Microsoft
July 16, 2021	Debt Financing	$660M	-
March 11, 2021	Debt Financing	$200M	Softbank Vision Fund
Jan 6, 2021	Series F	$7M	Hindustan Media Venture