Skift Take
Yes, 2021 truly is the year of the travel IPO. But in Oyo’s case, there’s a sense of seriousness after being struck harder than the majority of by the pandemic.
Matthew Parsons
SoftBank Group-backed Indian hospitality start-up Oyo Hotels and Rooms is anticipated to apply for an initial public offering (IPO) next week to raise around $1 billion, a source informed Reuters on Thursday.
The hotel aggregator is looking to list in India’s monetary capital of Mumbai and its IPO is tentatively pegged at between $1 billion and $1.2 billion, the source said, adding it will consist of a fresh concern of shares and a sell from existing shareholders.
Oyo did not immediately react to a request for remark.
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The listing strategy follows an excellent debut by food shipment firm Zomato Ltd in July. Berkshire Hathaway Inc-backed Paytm and private equity firm TPG-backed Nykaa have likewise declared IPO. Ride-hailing firm Ola, which is also backed by SoftBank, is likewise set to enter markets.
Oyo, in which SoftBank owns a 46 percent stake and is one of its greatest bets, has withstood months of layoffs, cost-cuts and losses during the international health crisis.
Its creator and CEO Ritesh Agarwal had actually stated in July that service was most likely to go back to levels seen prior to the second wave of Covid-19 infections in India and “grow from there.”
Last month, Oyo received a $5 million financial investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the lenders encouraging Oyo on the IPO, the source said.
(Reporting by Chandini Monnappa and Rama Venkat in Bengaluru; Editing by Arun Koyyur)
This short article was composed by Chandini Monnappa from Reuters and was lawfully licensed through the Industry Dive publisher network. Please direct all licensing questions to [email secured]
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