OYO IPO

OYO founder Ritesh Agarwal was once on a backpacking trip in India. His experience taught him that travellers have no idea about what to expect when it comes to picking budget hotels in India. In a bid to fill this gap in the hospitality industry, the then-19-year-old founded OYO in 2013.

OYO Hotels is a digital platform that connects property owners or operators (including hotels and apartments) with travellers. Today, there are more than 1.5 lakh properties listed on OYO catering to a wide user base. Backed by marquee investors such as Softbank and strategic investment from Airbnb, OYO’s parent company Oravel Stays has expanded its footprint to 35 countries.

Over the last two years, much like the rest of the hospitality and tourism industry, OYO too has faced a host of problems and challenges. The pandemic-led restrictions on movement dented its business. A sharp drop in revenue and occupancy rates forced the company to trim its workforce and control costs.

However, the pent-up demand for travel is expected to fuel recovery. After the restructuring, OYO is hoping to grow stronger and raise money to fuel business growth. The net proceeds from the fresh issue of OYO IPO will be used for repaying debt and funding organic as well as inorganic growth of the business.