According to Reuters, Oyo Hotels’ parent company, Prism, has confidentially filed for an initial public offering (IPO) in India. The confidential filing, made this week, follows recent shareholder approval to raise up to $742 million through a fresh issue of shares. Sources told Reuters the company is now seeking a valuation between $7 billion and $8 billion. This marks a second attempt, as Oyo first filed for an IPO in 2021 targeting a whopping $12 billion valuation before withdrawing. The company reported revenue of 62.53 billion rupees ($695.92 million) for the 2025 financial year, a 16% increase, with a net profit of 2.45 billion rupees.
Oyo IPO: Round Two
So, Oyo’s back in the ring. But here’s the thing: the valuation target tells the real story. Going from a $12 billion ambition down to $7-8 billion is a massive haircut, basically admitting the market just wasn’t buying the previous price tag. The confidential filing is a smart move—it lets them test the waters with regulators without the public scrutiny, giving them a chance to adjust the narrative before anything becomes official. They’ve got some better numbers to show this time, with actual profits, which is a big step up from the loss-making saga of years past. But is it enough to convince investors that the core, often controversial, asset-light franchise model is finally on solid ground? That’s the billion-dollar question. Or, in this case, the several-billion-dollar question.
The Broader Indian IPO Market
Oyo’s move isn’t happening in a vacuum. Reuters notes that India was the world’s second-largest primary equity market in 2025, raising over $21 billion. We’re seeing a steady pipeline, with quick-commerce player Zepto also filing confidentially just days ago. There’s sustained appetite, but it feels like the market is getting more discerning. Investors aren’t just throwing money at growth stories anymore; they want to see a path to profitability and sustainable unit economics. Oyo’s revised, lower valuation target is a direct reflection of this new reality. It’s a pragmatic step to actually get the deal done in a hot but increasingly savvy market.
What’s Next for Oyo?
The road from a confidential filing to a ringing the bell is long. Regulators will pick apart the draft papers, and Oyo will need to be ready to answer tough questions about its governance past, its unit economics, and how it plans to navigate the competitive hospitality landscape. A successful listing would provide a crucial cash infusion and an exit path for early backers like SoftBank. But more importantly, it would be a huge credibility boost for a company that’s been through the wringer. For the hospitality sector and the Indian tech startup scene, a successful Oyo IPO at any valuation would be a landmark event. It would signal that complex, scaled-up Indian consumer tech models can eventually find their footing in the public markets. We’ll be watching.
