OYO's strong financials support its IPO plans for this year

OYO, the hospitality startup founded by Ritesh Agarwal, is expediting its plans for an initial public offering (IPO) as a significant debt repayment deadline approaches. In 2019, Agarwal secured a $2.2 billion loan to increase his stake in OYO, with a $44 million tranche due by October 2025. Creditors, including Mizuho Financial Group Inc., are pressing for repayment but may extend the deadline to 2027 if OYO successfully lists publicly this year.

OYO has been exploring a public listing for several years, with previous attempts delayed due to the COVID-19 pandemic and other challenges. The company is currently in discussions with bankers, discussing the IPO valuation.

Financially, OYO reported a post-tax profit of $19.1 million in the third quarter of the current fiscal year, a nearly sixfold increase from $2.9 million in the same period last year. Revenue from operations rose 30.7% to $195.9 million during this quarter.