Oyo files IPO to raise over Rs 8,000 crore. details here

Oyo IPO Details:

• According to the filing, the SoftBank Group Corp and Airbnb Inc-backed firm plans to raise Rs 70 billion through the sale of new shares. The remainder would be secondary shares or shares sold by existing shareholders.
• According to CB Insights, the startup was valued at around $9 billion, making it the third most valuable startup in India.
• According to the prospectus, founder Ritesh Agarwal, his holding company RA Hospital Holdings and SoftBank Vision Fund – the three largest shareholders – are the promoters.
• According to the last filing with India’s Ministry of Corporate Affairs, SoftBank held 46% while Agarwal and his holding company held 33% stake in the firm.
• The company had last month appointed Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America as lead book managers for the public issue. Mint.
• The company is expected to be listed on Indian exchanges early next year.

Agarwal founded OYO in 2013 after dropping out of college. Now 27, if OYO has a successful listing, it will be worth billions of dollars. The high-profile entrepreneur was part of a rare group of SoftBank-backed startup founders coached by Masayoshi Son himself.

In 2019, Agarwal invested $2 billion, mostly borrowed, to triple his stake in the lodging startup and take his ownership to nearly a third. Gurgaon-based hotels account for over 90% of hotels listed on the OYO platform in India, Malaysia, Indonesia and Europe.

According to the filing, the app has been downloaded over 100 million times, making it one of the most popular travel apps in the world, along with Airbnb and Booking.com. Its loyalty program has over 9 million users, generating direct demand from customers.

(with inputs from Bloomberg)