Oyo recovery picking pace; no timeline for IPO yet

“If all goes well, our numbers will be back to pre-wave two levels in India in a couple of weeks, and grow further from there,” said Ritesh Agarwal, Founder.

Oyo recovery picking pace; no timeline for IPO yet

The chief executive of India’s Oyo Hotels and Homes stated that the SoftBank-backed, hospitality startup’s business is likely to return to pre-second wave levels, but did not offer any timeline for the IPO of the company.

Ritesh Agarwal, Founder & CEO, said, “If all goes well, our numbers will be back to pre-wave two levels in India in a couple of weeks, and grow further from there.

SoftBank owns a 46% stake in the hotel aggregator and is one of its biggest bets. The company has endured months of cost cuts, losses, and layoffs during the pandemic. But with easing restrictions, and increasing vaccinations in the country, travel demand is picking up pace, with local tourist attractions observing substantial traffic.

Staycations and workations are the new trends, and are here to stay,” he added.

He further stated that Oyo, which facilitates booking for budget hotels and allows guests to book via phone app, will consider a potential public offering, but did not provide a timeline.

"We're keeping a close eye on upcoming IPOs, and I'm sure our board will weigh in on our business progress and general technology company listings."

India has seen several listings this year, fueled by foreign funds and interest from small investors.

Zomato, a food delivery startup, filed for an initial public offering in late April, and One97 Communications Ltd, the parent company of Paytm, is expected to file a draft prospectus as soon as July 12.

Source: Reuters