Global travel tech giant OYO is preparing to file its Draft Red Herring Prospectus (DRHP) in November, aiming for a $7-8 billion IPO valuation, according to sources. The company is set to approach its board of directors with the proposal next week as it finalizes strategic and financial details.
When contacted, an OYO spokesperson stated:
"While we cannot comment on any timelines related to OYO’s DRHP or IPO plans, as these decisions are guided solely by the Board of Directors, the company continues to evaluate strategic options to drive value for its stakeholders."
This indicates that while the November filing is being considered, the company is carefully assessing market conditions and regulatory requirements before proceeding.
According to industry insiders, discussions with key banking partners have intensified in recent weeks. OYO has engaged with banks such as Axis Bank, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies to assess market sentiment and valuation expectations.
The anticipated valuation guidance is around $7-8 billion, roughly ₹70 per share, which is approximately 25-30 times the company’s EBITDA. The board of directors will review these figures and approve key strategic elements ahead of the DRHP filing.
SoftBank, one of OYO’s largest shareholders, has been closely involved in preparing for the IPO. The upcoming filing is expected to highlight OYO’s latest Q1 financial performance, showcasing strong growth and improved operational fundamentals. This comes during a quarter that has seen double-digit growth in the hospitality sector, providing favorable tailwinds for the IPO.
OYO is actively working on rolling out a new parent brand identity to unify its growing portfolio. Earlier this year, founder and CEO Ritesh Agarwal invited the public to suggest names for the parent company, Oravel Stays Limited, through social media. The selected name may become the new identity for the group, reflecting its broader vision and strategic direction.
Additionally, OYO is exploring the launch of a separate app for its premium hotels and mid-market to premium company-serviced hotels, a segment experiencing rapid growth both in India and international markets.
The upcoming IPO is part of OYO’s broader strategy to capitalize on market momentum, secure fresh capital, and strengthen its global hospitality footprint. By showcasing strong Q1 results and leveraging growth in premium and mid-market hotel segments, OYO aims to attract significant investor interest.
The DRHP filing in November will mark a major milestone in OYO’s journey from a startup to a global travel tech leader, potentially unlocking substantial value for existing shareholders, including SoftBank.
Conclusion
OYO’s anticipated IPO represents a key growth phase for the company, combining strategic brand evolution, financial growth, and market expansion. With a targeted valuation of $7-8 billion and robust market preparation, the upcoming DRHP filing could be one of the largest travel-tech IPOs in India, setting the stage for future growth and international visibility.