Oyo’s Pre-IPO Ventures in India, Indonesia, The UK, And The US

Oyo Hotels and Rooms is a global hospitality company that provides accommodations such as hotel rooms across many places in India and countries like Indonesia, China, UAE, Malaysia, Brazil, Mexico, Indonesia, Vietnam, the United States, etc. The company was founded by Ritesh Agarwal in 2012 as Oravel Stays and later nicknamed OYO. The hospitality giant grew from a startup to a multinational company spanning nations and registering good results worldwide. Finally, after a decade of growth and endeavours, the company will go public, which made Oyo Pre-IPO share price a trending question in the business world. 

The company has postponed its public offering due to volatile business conditions. It is active in the unlisted market, and Oyo rooms share price in the unlisted market is 67. The Oyo share price is subject to market trends, and the current price reflects the company’s outstanding growth potential and performance history.

Performance Over the Years

After its inception in 2012, Oyo soon became a success story. Today, the company has 23,000 hotels which adds up to 850,000 rooms. It is an established brand in hospitality and tourism in India and China. Oyo Hotels and Rooms are establishing its identity in the US, UK, and Indonesia. The company has 10,000 hotels in China, 720 hotels in Indonesia, 85 in the UK, and 68 in the UK. Oyo has been registering positive performance in the UK.

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The bar graph shows a 37% increase in room nights for the hotels that partnered with Oyo. Oyo’s success can be attributed to its innovative measures and ability to keep up with the hospitality and tourism industry’s trends. The company met losses during the pandemic and has been unable to reclaim its revenue of Rs 13,413 crore in the financial year 2020 before the pandemic. 

However, the company has strived harder to cut the losses and amend the declines during the lockdowns. Oyo reported an increase of 18% percent in the year 2022, the revenue estimated to be Rs 4.9 billion.

What 2023 Has in Store for Oyo?

In 2023, Oyo plans to expand its business by increasing its presence and premium hotels worldwide. The management announced that Oyo would add 1800 premium hotels in India under the brands like Townhouse Oak, Collection O, Oyo Townhouse, and Capital O. The year 2023 is seeing a surge in the tourism and hospitality industry after major lockdowns worldwide, and Oyo is planning to stay ahead of its competitors. The company had announced its plan to double its premium hotels in Indonesia by the end of the year, and it disclosed that it could invest around USD 300 million. 

The premium hotels will have larger rooms, facilities such as fridges, hair drier, etc., including in-house swimming pools and restaurants. Indonesia is one of many countries the company has its eyes set upon. The hotel giant invested in the US and the UK, and the excellent results mean the company can invest more soon.

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How Would The New Ventures Shape the OYO IPO Around The Corner?

It has been over two years since the company filed its DRHP with SEBI in September 2020 for an IPO worth 8430 Rs. The DRHP elaborates that the initial issue will be Rs. 7000 crores, and the remaining will be later offered in sales. The company was burdened under the debts its subsidiaries took and said it would use Rs—24.41 billion to repay that. The rest will be invested in growth. However, the pandemic was brutal for many industries, and the hospitality and tourism industries registered were affected the worst. The value of OYO dipped severely in the lockdown, and in October 2022, The Economic Times reported it to be around USD 6.5 billion. Now, Oyo is waiting for the conditions to improve before proceeding with the Initial Public Offering. 

The OYO IPO share price and date remain unclear and are yet to be declared. However, with its large size, global presence, and promising growth potential, the OYO IPO is India’s biggest IPO. You can make greater long-term profits by investing early and buying unlisted shares of companies before they go public. Stockify has a catalogue of emerging and established companies with details on their performances over the years, so you can choose your pick. You can connect with the experts on Stockify and take their guidance to understand the market and make sound investments. 

Originally posted 2023-02-28 21:22:51.