India’s Oyo makes a second try for IPO after valuation slumps
05 November 2024
Oyo Hotels filed fresh documents for an initial public offering in India, facing a challenging market for startup debuts after technology valuations declined.
The company has filed its IPO prospectus with Indian authorities, it said in an announcement in the Financial Express newspaper Saturday, without disclosing the amount it seeks, other financial details or advisers. In its original effort to go public in 2021, Oyo had filed to raise Rs84.3 billion ($1 billion).
Founder Ritesh Agarwal, 29, has been working to put the hotels and lodging operation back on steady footing after the Covid pandemic eliminated global travel and led to yawning losses. India’s answer to Airbnb had been valued at $10 billion in 2019, but SoftBank Group Corp., the company’s largest backer, marked down that figure to $2.7 billion last year.
The IPO filing is Oyo’s second attempt to go public, after India’s stock market regulator raised multiple red flags on its earlier try in late 2021. Since then, valuations of technology companies have declined after accelerating inflation and rising interest rates left customers with less to spend and raised concerns of a potential recession.
Oyo Hotels filed fresh documents for an initial public offering in India, facing a challenging market for startup debuts after technology valuations declined. The company has filed its IPO prospectus with Indian authorities, it said in an announcement in the Financial Express newspaper Saturday, without disclosing the amount it seeks, other financial details or advisers. In its original effort to go public in 2021, Oyo had filed to raise Rs84.3 billion ($1 billion). Founder Ritesh Agarwal, 29, has been working to put the hotels and lodging operation back on steady footing after the Covid pandemic eliminated global travel and led to yawning losses. India’s answer to Airbnb had been valued at $10 billion in 2019, but SoftBank Group Corp., the company’s largest backer, marked down that figure to $2.7 billion last year. The IPO filing is Oyo’s second attempt to go public, after India’s stock market regulator raised multiple red flags on its earlier try in late 2021. Since then, valuations of technology companies have declined after accelerating inflation and rising interest rates left customers with less to spend and raised concerns of a potential recession.
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