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  1. Oyo hurries IPO launch as founder Ritesh Agarwal’s debt deadline nears: Report

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Oyo hurries IPO launch as founder Ritesh Agarwal’s debt deadline nears: Report

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2 min read | Updated on March 04, 2025, 13:19 IST

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SUMMARY

OYO founder and CEO Ritesh Agarwal borrowed $2.2 billion in 2019 to increase his stake in the company and gain more strategic control. The multibillion-dollar loan package was restructured in 2022, and Agarwal has yet to clear the first installment.

OYO posted a post-tax profit of ₹166 crore in Q3 FY25, reflecting an increase of nearly six times from ₹25 crore in the year-ago quarter. | Image: Shutterstock

OYO posted a post-tax profit of ₹166 crore in Q3 FY25, reflecting an increase of nearly six times from ₹25 crore in the year-ago quarter. | Image: Shutterstock

OYO IPO: Travel tech unicorn OYO is accelerating its initial public offering (IPO) plans as the repayment deadline for the $383 million that founder and CEO Ritesh Agarwal borrowed is looming, Bloomberg reported.

According to the report, Agarwal borrowed $2.2 billion in 2019 to increase his stake in the company and gain more strategic control. The multibillion-dollar loan package was restructured in 2022, and the OYO chief has yet to clear the first installment.

Now, creditors are seeking $383 million if the hospitality chain does not launch an IPO by October. However, they are ready to delay repayment till 2027 if the OYO IPO listing takes place this year, Bloomberg reported.

OYO Q3 results

OYO posted a post-tax profit of ₹166 crore in the third quarter of the current fiscal year, reflecting an increase of nearly six times from ₹25 crore in the year-ago quarter, news agency PTI reported, citing sources.

Revenue from operations rose 30.7% to ₹1,695 crore in the latest October-December quarter, compared to ₹1,296 crore in the corresponding period last fiscal.

The company achieved an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹249 crore in Q3 FY25, up 22% from ₹205 crore a year back.

The gross booking value (GBV) showed an uptick of 33% to ₹3,341 crore in the reporting quarter, as against ₹2,510 crore in Q3 FY24.

For the first nine months of FY25 (9M FY25), OYO posted a net profit of ₹457 crore vs a loss of ₹111 crore in the same period last year.

"OYO was able to demonstrate its ability to run profitable operations, but the topline growth trajectory was a question mark. The renewed focus on revenue growth has borne results with the company showing a 31% increase in topline," a source close to the company told PTI.
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