OYO IPO 2025: DRHP Filing in November at $7-8 Billion Valuation

OYO is  giving it another shot, and this time the timing, the numbers and the backers and supporters make this attempt genuinely worth watching and truly intriguing.

After two earlier aborted bids, the hospitality chain is prepared to file its draft Red Herring Prospects (DRHP) in November 2025, which targets about $7-8 billion IPO valuation. The headline converts Oyo alone to a potential marquee public debut from an aspiring unicorn, but the IPO details below it matters far more for investors and the broad market.

What the $7–8 billion target implies

Multiple outlets citing and various sources referencing PTI and market sources say OYO plans to approach the market with a DRHP in November and is aiming for a $7-$8 billion valuation, a figure and number that would place OYO among the biggest Indian tech/hospitality listings if realized. 

That target valuation is a sizable step down from the $10–12 billion marks floated during earlier listing ambitions, but still signals confidence from the company’s side that it can command a premium multiple on improving operating metrics.

The Comeback Attempt

OYO’s earlier plans to go public did not take off. The first filing in 2021 aiming for a $12 billion valuation was dropped amid market volatility and regulatory scrutiny. A second attempt in 2023 was also shelved following SEBI’s extensive queries on governance and valuation methodology. Now, in its third attempt, OYO seems ready to re-enter public markets with caution and better positioning.

OYO has achieved its best year looking like a magical rise yet by emerging as India’s most profitable startup in FY25, with a net profit after tax (PAT) of ₹623 crore, a 172% jump and conservatively experienced a significant surge from ₹229 crore in FY24.

This was a major milestone after years of losses. Revenue grew 20% to ₹6,463 crore, powered in large part by OYO’s premium offerings like Townhouse Hotels, Sunday Hotels, and by integrating G6 Hospitality into its portfolio.

Adjusted EBITDA rose and increased to ₹1,132 crore, reflecting up 27% from ₹889 crore in the previous year. Impressively, this marks the 10th consecutive quarter that OYO delivered EBITDA-level profitability. Gross Booking Value (GBV) soared by 54% YoY to ₹16,436 crore, riding strong demand and strategic expansion.

OYO is projecting even stronger results for FY26: PAT could reach ₹1,100 crore and EBITDA is expected near ₹2,000 crore, helped by full-year contributions from its Motel 6 acquisition, which is expected to add over ₹630 crore EBITDA in FY26.

Funding History and Book Value

OYO has raised over $4.5 billion in funding since inception. Its largest backer, SoftBank Vision Fund, still holds around 47% stake. Other investors include Lightspeed, Sequoia, Airbnb, and Microsoft.

In its last major secondary sale (2023–24), shares reportedly changed hands at ₹40–45 per share, implying a valuation closer to $5 billion.

Based on filings, OYO has approximately 7 billion outstanding shares. At the targeted $7–8 billion valuation, this translates to an IPO price band of around ₹60–66 per share.

Book value per share is estimated at ₹15–16, which means OYO is targeting a Price-to-Book (P/B) multiple of ~4x.

OYO: Expanding Global Footprint

OYO continues to grow its premium presence and in terms of numbers it has expanded sparsely launching over 30 Sunday Hotels across India, UAE, Saudi Arabia, and Southeast Asia in the past year. The platform now spans roughly this much around 22,700 hotels, 1,19,900 homes, and 91,300 listings globally.

Valuation and Investor Sentiment

Some reports suggest that OYO’s DRHP filing in November 2025 is pegged at a valuation between $7–8 billion, which translates to ~₹58,100 crore – ₹66,400 crore. With around 657 crore outstanding shares, this implies an IPO price band of roughly ₹88–101 per share, compared to an estimated unlisted market price of ~₹50 per share.

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At these levels, OYO would be valued at nearly 25–30× FY25 EBITDA and 93–107× FY25 PAT, significantly higher than traditional hospitality peers like Indian Hotels or Lemon Tree, though OYO argues its asset-light, tech-enabled model deserves a premium.

Behind the scenes, SoftBank, OYO’s largest shareholder, has reportedly engaged with marquee investment banks including Citi, Goldman Sachs, Axis, ICICI, JM Financial, and Jefferies to gauge investor appetite. The board is expected to review the proposal soon as final preparations are being made.

​Market Tailwinds and Strategic Moves

At its core, the upcoming DRHP filing is being timed to leverage improved fundamentals. OYO’s recent quarterly performance indicates stronger growth, along with improved financials, marking a potential inflection point. Adding to that, the hospitality sector is riding a wave of double-digit growth, especially post-pandemic.

On the branding front, OYO is also exploring a new parent brand identity and a separate app for its premium hospitality offerings moves that signal a broader strategic rethink of its platform and value proposition.

Conclusion

OYO’s FY25 financial performance reads like a comeback story. Strong revenue growth (20%), continuous sustained profitability (10 persistent profitable EBITDA quarters), and increase in booking establishes a solid foundation. With a clear growth trajectory and optimistic FY26 estimates, Oyo appears in a better position than before and its upcoming IPO plans now relax on forcing the financial position or compelling financial footing.