An Indian budget hotel chain, Oyo pulls out of IPO application to the Securities and Exchange Board of India (SEBI) for a second time.
A new blow to its already shrunken goals, Oyo, the once-high-flying Indian cheap hotel company, has withdrawn its initial public offering (IPO) application from the Securities and Exchange Board of India (SEBI) for the second time.
The initial public offering (IPO) plans of the firm with its headquarters in Gurugram, which at its highest point commanded a valuation of $10 billion, were scrapped on May 17, according to a disclosure made on the regulatory body’s website. Initially, Oyo had submitted papers to SEBI in 2021 for a public listing; however, the company withdrew the paperwork and resubmitted it in 2023.
SEBI has not yet approved either of Oyo’s applications, raising concerns about the company’s readiness for public scrutiny. According to a story published by TechCrunch earlier this month, Oyo has been desperately trying to acquire a new round of funding at a valuation of $3 billion or less. Oyo has refuted that it intends to raise funds at that valuation.
TechCrunch was informed by a source familiar with the subject that the company is currently attempting to raise capital at a value as low as $2 billion to $2.3 billion. Today, it has raised over three billion dollars in equity and debt.
In the past, Oyo was touted as a disruptor in the affordable hotel business. It was supported by SoftBank, Peak XV, Lightspeed, Airbnb, and Microsoft (among other investors). However, the startup has been criticized for its business practices in recent years. In 2020, the company even fired hundreds of staff to reduce expenses.