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India: Softbank-backed Indian hospitality chain OYO is rumoured to be preparing to refile its draft red herring prospectus [DRHP] for an initial public offering [IPO] in the first quarter of this financial year, possibly even as soon as March.
It would mark OYO’s third attempt at going public, having delayed multiple attempts thus far due to volatile market conditions.
According to The Economic Times, early investors in OYO have begun selling their stakes in the chain. Lightspeed Venture Partners is reportedly in talks with a consortium of family offices to sell a portion of their stakes at a valuation of $3.9 billion, while Peak XV Partners had already also sold some of its remaining three per cent stake.
A potential IPO follows a restructuring of OYO’s shareholders and debt financing arrangements to support the offering.
Earlier this month, OYO raised Rs 550 crore [around US$64.1 million] in a funding round led by Redsprig Innovation Partners, which is owned by OYO founder and CEO, Ritesh Agarwal.
And last August, Agarwal led a $173.5 million [Rs 1,457 crore] Series G funding round in the hospitality chain through his Singapore-based fund, Patient Capital.
The fundraise in August took OYO back to a valuation of $2.4 billion, still a significant drop from its previous high valuation of $10 billion.
Both rounds will be used to accelerate OYO’s global expansion and growth. Founded in 2013, the company already operates in 35 countries across West Asia, Europe and the United States, and is targeting further growth in Malaysia.
Also last year, OYO acquired Paris-based short-/mid-term rental property management company Checkmyguest, including the purchase of housing renovation business [formerly Helpmyguest] and luxury rental apartment company Studio Prestige.
Having bought Amsterdam-based vacation rental company @Leisure Group in 2019, the Indian chain currently manages more than 50,000 vacation homes in 20+ European countries, including in France, Germany, Spain, Italy, the Netherlands, Belgium and Austria. Checkmyguest was OYO’s third major purchase in the short-term rental space since launching OYO Vacation Homes, following the acquisition of Croatian vacation rental franchise agency Direct Booker for $5.5 million in May 2022 and Nordic-based holiday home operator Bornholmske Feriehuse three months later.
