Oyo's Ritesh Agarwal Has An Important Decision To Make

Oyo Founder Ritesh Agarwal. (Photo source: Agarwal's Facebook post)

Ritesh Agarwal's Oyo Hotels will decide on its initial public offering in a few weeks. The decision is specifically on the timing of the issue but also less specifically about what the pricing should be.

According to five people in the know, a final decision on the timing of the IPO has not yet been taken. The company's board will meet soon, where Agarwal will present the IPO plans and the call will be taken, the first of the five people said, seeking anonymity.

While a final list of book running managers is still being made, there are two domestic and one international investment bank taking the lead, this person said.

The choice currently is between hitting the market at the earliest or pushing it to 2026. There are fair pros to both, the first person said. If Oyo announces its IPO soon, it would likely float through because of its improved profitability in FY25, with an Ebtida of over Rs 1,100 crore.

In May, Agarwal had called Oyo the country's most profitable startup.

If the deal is pushed to next year, though, Oyo would be able to take benefit of the improved financials in the October-December quarter, which is the most lucrative period for the travel and tourism business.

Current assessments place Oyo's private market valuation at around $4.5 billion, a second person added. The company is expecting a valuation of $5.5-7 billion for its IPO.

The Ritesh Agarwal-led company is expected to continue in its acquisition-led growth strategy in overseas markets while looking for prospective investors before an IPO materialises, a fourth person explained.

Oyo is focused on delivering revenue growth and premiumization of its brands. Our Ebitda reached Rs 1,100 crore in FY25, up from Rs 889 crore in FY24—a growth of ~24%. We have only recently begun to consider some early engagement for a potential offering. The feedback we have received so far has been encouraging, although the timing of an IPO will ultimately be subject to board consideration. We would like to clarify that the IPO valuation referenced here is incorrect. While we continue to engage with multiple banks, we have recently built deeper relationships with a few select partners.

Oyo spokesperson to NDTV Profit's queries

Oyo has been looking for a stock market listing for many years now. The plan faced a setback 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, followed by Agarwal's 30%. As of July 2025, SoftBank has one representative — Sumer Juneja — as a non-executive director on Oyo's board.

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.