Oyo Founder, Bankers To Meet SoftBank To Chalk Out IPO Plan At $7-Billion Valuation

Hospitality brand Oyo Hotels' founder Ritesh Agarwal is set to meet representatives from Japan's SoftBank Group Corp. in June to discuss the company's India listing, people aware of the matter told NDTV Profit.

Agarwal — along with a posse of merchant bankers from Citi, Jefferies, Goldman Sachs Axis Capital and ICICI Securities — will be presenting a plan to dilute as much as 10% stake at a valuation of at least $7 billion, the abovementioned people added.

Other than valuation metrics, SoftBank will be looking at expansion strategies, investor sentiment and global conditions before taking any call.

News agency PTI was the first to report Agarwal's plan to meet SoftBank representatives in London.

Oyo, one of SoftBank’s many portfolio companies in India, has been looking for a stock market listing for many years now. The plan was set back when Covid-19 hit the hospitality sector, and the company has been eyeing a successful reattempt ever since.

SoftBank is Oyo's largest shareholder with over 40% stake. Agarwal owns over 30% himself.

The Japanese conglomerate's view is considered important for the IPO's timing, given its significant stake in the hospitality startup.

Bloomberg News had earlier reported that Oyo had delayed plans for an October IPO after opposition from SoftBank due to a stock market downturn.

Earlier this month, Ritesh Agarwal had called Oyo the country's most profitable startup. The company's bottom line for fiscal 2025 came up to Rs 623 crore, rising nearly three-fold over the previous year.

According to a Bloomberg report, Oyo creditors, including Mizuho Financial Group Inc., insisted that Agarwal pay off the dues for $383 million he borrowed — part of a multibillion-dollar loan package — if the startup doesn’t have an IPO by October. Lenders asked for clear visibility on Agarwal’s liquidity and were said to potentially allow for a delayed repayment if Oyo lists this year.

NDTV Profit has reached out to Oyo for comments on the story.