SoftBank-Backed Oyo to File for $1.2 billion IPO Next Week

SoftBank-backed Indian hospitality startup Oyo Hotels and Rooms is expected to file for an initial public offering (IPO) next week to raise around US$1 billion, the Economic Times reported, citing banking sources.

The listing plan by the hotel aggregator follows a stellar debut by food delivery firm Zomato in July.

Berkshire Hathaway-backed Paytm and private equity firm TPG-backed Nykaa have also filed for IPO.

Ride-hailing firm Ola, which is also backed by SoftBank , is also set to enter markets.

The Oyo IPO, tentatively pegged at between US$1 billion and US$1.2 billion, will consist of a fresh issue of shares and an offer for sale from existing shareholders, ET reported.

Oyo did not immediately respond to a Reuters request for comment.

The startup, in which SoftBank owns a 46 per cent stake and is one of its biggest bets, has endured months of layoffs, cost-cuts and losses during the global health crisis.

Its founder and chief executive Ritesh Agarwal had said in July that business was likely to return to levels seen before the second wave of Covid-19 infections in India and "grow from there".

Last month, Oyo received a US$5 million investment from Microsoft. Separately, a financial news website reported that it had shortlisted JPMorgan, Kotak Mahindra Capital and Citi for a more than US$1.2 billion initial share sale. -Reuters

September 23, 2021