Indian hospitality unicorn Oyo has once again delayed its much-anticipated Initial Public Offering (IPO), this time pushing the timeline to March 2026. The decision, according to a Bloomberg report, comes amid resistance from its largest shareholder, SoftBank, and broader market volatility. This marks the third time Oyo has deferred its IPO plans, following previous filings in 2021 and 2023.
Sources familiar with the matter revealed that SoftBank, which holds a significant stake in Oyo, is not in favor of a 2025 listing. The Japanese investment giant reportedly wants Oyo to wait until its financials show stronger performance before proceeding with the public offering. SoftBank’s influence appears to be a decisive factor in the company’s latest delay.
Another reason behind the deferment is the unstable stock market environment. Although India’s Nifty 50 index has gained around 3% in 2025, it still lags more than 7% behind its record high from October 2024.
This uncertainty has affected the IPO ambitions of several Indian companies. For instance, LG Electronics’ India division postponed its listing, and electric scooter manufacturer Ather Energy scaled back its IPO size and valuation.
Oyo’s founder, Ritesh Agarwal, has been pushing for an early IPO, largely due to a substantial $2.2 billion loan he secured in 2019 to increase his ownership in the company. The loan, backed by SoftBank CEO Masayoshi Son, had its first repayment deadline in December. Sources suggest that if Oyo goes public soon, lenders might be willing to extend the repayment timeline.
Now, reports indicate that SoftBank is considering a proposal to extend the loan deadline in exchange for a postponed IPO. This potential move could ease pressure on Agarwal while aligning the public listing with improved market and company conditions. Such a deal would highlight the intertwined financial interests between Oyo’s founder and its major investor.
Oyo's earlier filings with Indian regulators aimed for a lofty valuation, reaching up to $12 billion. However, the current environment has led to a more conservative approach. Investor expectations have shifted, and the company is likely reassessing its valuation goals amid intensifying scrutiny and shifting sentiments.
Both Oyo and SoftBank have refrained from making any official statements regarding the IPO delay. Their silence leaves room for speculation, but insiders indicate that behind-the-scenes negotiations are ongoing, especially around the founder's loan and future listing timeline.
Conclusion: A Strategic Pause Amid Pressure
Oyo’s decision to postpone its IPO yet again reflects the delicate balance between internal financial pressure and external investor expectations. With SoftBank favoring financial improvement and market recovery over immediate listing, Oyo appears to be taking a more strategic, long-term approach. As market conditions evolve and internal goals realign, a 2026 IPO might offer a more favorable window for both the company and its stakeholders.