- Oyo halts IPO plans again as SEBI approval remains elusive.
- The Indian hospitality giant’s valuation plummets from $10 billion in 2019 to $2-$2.3 billion.
- Despite challenges, Oyo has attracted notable investors and raised $3.2 billion to date.
SEBI plays hard to get with Oyo’s IPO plans
Oyo, the Indian hospitality giant, has once again slammed the brakes on its IPO plans, according to a TechCrunch report.
The company, which first tried to go public in 2021 and refiled in 2023, has been left waiting at the altar by India’s Securities and Exchange Board (SEBI).
SEBI’s reluctance to give the green light has left everyone wondering if Oyo is truly ready for its big stock market debut.
Oyo’s valuation rollercoaster: From sky-high to rock-bottom
It’s been a bumpy ride for Oyo in recent years, and we’re not just talking about their hotel beds! In 2022, the company bid farewell to 600 employees in a round of job cuts, and longtime backer SoftBank reportedly slashed Oyo’s valuation to a mere $2.7 billion.
That’s a far cry from the lofty $10 billion valuation Oyo enjoyed back in 2019. Even when the company set its sights on a more modest $7 billion IPO valuation target in 2022, it seems the universe had other plans.
Now, rumors are swirling that Oyo is seeking pre-IPO capital at a valuation of just $2 billion to $2.3 billion – a jaw-dropping 70% plunge from its 2019 peak. In January, there were whispers of a $400 million fundraise led by Malaysia’s wealth fund, Khazanah Nasional, but Oyo quickly put those rumors to bed.
Oyo has managed to attract some big-name investors like SoftBank, Peak XV, and Microsoft, raking in a cool $3.2 billion in disclosed funding to date, according to Tech in Asia’s database.
But with its IPO plans on ice and its valuation in flux, it seems Oyo’s future is anyone’s guess!
To read the original article: https://www.techinasia.com/oyo-shelves-ipo-fundraising-endeavor
