UpcomingMainboardHospitality & Travel Technology · Budget Hotel Aggregator / Tech-enabled Hospitality
OYO
OYO
Price Band: —
Min. Investment: Not disclosed (DRHP stage)
Issue Size: ₹8,430 Cr
About the Company
What does this company do?
Oravel Stays Limited, operating under the OYO brand, is a technology-driven hospitality company that partners with hotels and homes to offer standardized, affordable accommodation. Founded in 2012 by Ritesh Agarwal, OYO operates a large network of patrons/hotels across India and internationally, leveraging proprietary…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
₹8,430 Cr
Fresh Issue
₹7,000 Cr
Proceeds go to company
OFS
₹1,430 Cr (OFS proceeds go to selling shareholders: SVF India Holdings (Cayman) Limited ₹1,328.53 Cr, A1 Holdings Inc. ₹51.62 Cr, China Lodging Holdings (HK) Limited ₹23.13 Cr, Global Ivy Ventures LLP ₹26.71 Cr)
Proceeds to selling shareholders
Products & Brands
Key offerings and brand portfolio of the company.
OYO Hotels & Homes: Branded budget and mid-scale hotel rooms offered through partnerships with independent hotel owners under the OYO brand, providing standardized amenities and tech-enabled experiences
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | FY2021 | FY2020 | FY2019 |
|---|
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS (₹)
—
Not disclosed in provided DRHP extract
P/E Ratio
—
Price band not yet disclosed
RoNW (%)
—
Not disclosed in provided DRHP extract
NAV per Share (₹)
—
Not disclosed in provided DRHP extract
Debt/Equity
—
Not disclosed in provided DRHP extract
EBITDA Margin (%)
—
Not disclosed in provided DRHP extract
PAT Margin (%)
—
Not disclosed in provided DRHP extract
Revenue Growth YoY
—
Not disclosed in provided DRHP extract
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
OFS Note: ₹1,430 Cr of OFS proceeds will go directly to selling shareholders (SVF India Holdings (Cayman) Limited, A1 Holdings Inc., China Lodging Holdings (HK) Limited, and Global Ivy Ventures LLP) and will NOT be received by the company.
1
Fresh Issue proceeds of ₹7,000 Cr to be used by the Company (specific use of proceeds not detailed in the provided DRHP extract — full objects section is on page 154 of the DRHP).
2
The Company may also consider a Pre-IPO Placement of up to ₹1,400 Cr, which if undertaken, would reduce the Fresh Issue size accordingly.
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Asset-light, technology-driven hospitality model with global scale
Strong OYO brand with high recall in budget hospitality segment
Diversified revenue streams across multiple geographies and property types
Proprietary technology platform for pricing, distribution, and operations
⚠️Weaknesses
Persistent net losses and negative operating cash flows over multiple years
Heavy reliance on third-party property owners for service quality and brand standards
Complex multi-jurisdiction international operations increasing compliance and execution risk
High customer acquisition and retention costs in a competitive market
🚀Opportunities
Large underpenetrated budget hospitality market in India and other emerging economies
Recovery and growth in domestic and international travel post-COVID-19
Expansion into new segments such as vacation homes, long-stay, and co-living
Increasing smartphone and internet penetration driving online travel bookings
🔥Threats
Intense competition from global OTAs (MakeMyTrip, Airbnb, Booking.com), hotel chains, and local players
Ongoing and potential future public health crises disrupting travel demand
Regulatory changes in hospitality, data privacy, and technology sectors across jurisdictions
Macroeconomic slowdowns reducing discretionary travel and hospitality spending
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Large-scale technology-driven hospitality platform with a significant network of hotels and homes across India and internationally
✓
Strong brand recognition under the OYO brand with a large customer base and repeat usage
✓
Proprietary technology stack enabling dynamic pricing, distribution, and property management at scale
✓
Asset-light business model through partnerships with independent hotel owners and real estate operators
✓
Diversified global presence across India, Europe, Southeast Asia, the US, and other geographies
✓
Backing of marquee global investors including SoftBank (SVF India Holdings) providing capital and strategic support
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
History of significant net losses and negative cash flows from operations; no assurance of future profitability
⚠
Highly competitive hospitality and travel technology market with competition from global OTAs, hotel chains, and short-term rental platforms
⚠
Dependence on third-party hotel and property partners for quality control and brand consistency
⚠
Regulatory risks across multiple jurisdictions including licensing, data privacy, and hospitality laws
⚠
Impact of COVID-19 pandemic and future public health crises on travel demand and occupancy rates
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Risks related to international operations including currency fluctuation, geopolitical issues, and compliance with local laws
◆ Neutral
Should You Apply?
Oravel Stays Limited (OYO) is a technology-driven hospitality platform founded by Ritesh Agarwal, offering budget and mid-scale accommodation through an asset-light aggregator model across India and globally. The company is raising ₹8,430 Cr through this IPO comprising a Fresh Issue of ₹7,000 Cr and an OFS of ₹1,430 Cr by existing investors including SoftBank's SVF India Holdings. While OYO benefits from strong brand recall, a large hotel network, and proprietary technology, the company has a history of significant net losses and has yet to demonstrate sustained profitability, which remains a key concern for investors. The price band and financial details were not disclosed in this DRHP filed on September 30, 2021, making a definitive valuation assessment premature at this stage. Investors should monitor the final RHP for pricing, use of proceeds details, and updated financials before making an investment decision.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (7)
Kotak Mahindra Capital
J.P. Morgan
Citigroup
ICICI Securities
Nomura
JM Financial
Deutsche Bank
Registrar to the Issue
📋
Link Intime India Private Limited
Registrar to the Issue