October 19, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

Oyo latest startup to file for IPO, eyes over Rs 8k cr

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Oyo latest startup to file for IPO, eyes over Rs 8k cr
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Oyo latest startup to file for IPO, eyes over Rs 8k cr
Oyo latest startup to file for IPO, eyes over Rs 8k cr

BENGALURU: Ritesh Agarwal’s pioneering hotel aggregation venture, Oyo Hotels & Homes, has filed for an IPO to raise Rs 8,430 crore ($1.2 billion) in the Indian markets. Oyo joins a slew of startups in tapping the public market. Zomato had a successful Indian IPO in July, and Freshworks an equally successful one in the US last month. Nykaa, Paytm, and Policybazaar are others expected to list soon.
Oyo’s IPO price band was not disclosed in the draft red herring prospectus (DRHP) filed with Sebi. A Reuters report said Oyo is seeking a valuation of $10-12 billion. The IPO comprises 83% or Rs 7,000 crore of fresh issue of shares. The remaining 17%, or Rs 1,430 crore, will be an offer for sale. The hotel aggregator is planning to use the proceeds from the fresh issue towards paring debt, prepayment of certain borrowings by its subsidiaries, for acquisitions, and to expand its footprint. Agarwal and some of the investors in the company, including Lightspeed Venture Partners, Sequoia Capital, China’s ride-hailing company Didi, Greenoaks Capital, Airbnb, and Microsoft, will not offload any stake in the offering. SoftBank, Grab, China Lodging, and Global IVY Ventures will all sell a small stake each The company has the option to raise up to Rs 1,400 crore in a pre-IPO placement.
Founded in 2012 as Oravel Stays, Oyo’s technology platform has reshaped the fragmented global hospitality industry, especially the small- and mid-size hotels. Agarwal, then 18, launched Oravel as an aggregator of bed & breakfasts and serviced apartments in Delhi. The following year, he won the Peter Thiel Fellowship, a two-year, $100,000-grant for young people who want to build new things instead of sitting in a classroom. The same year, Oravel became Oyo.
Oyo today has more than 157,000 properties across more than 35 countries. India, Indonesia, Malaysia, and Europe are its biggest markets. Its app was the most downloaded accommodation app in Asia and third largest in the world in 2020, according to app insights provider Sensor Tower.

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