Bengaluru: softbank Group Backed Indian Hospitality Startup Oyo A source told Reuters on Thursday that Hotels & Rooms expects to file an initial public offering (IPO) next week to raise about $1 billion.
The hotel aggregator is looking to get listed in India’s financial capital Mumbai and its IPO is pegged at between $1 billion and $1.2 billion, the source said, adding that it would involve a fresh issue of shares and an offer for sale from existing shareholders.
Oyo did not immediately respond to a request for comment.
Listing plan follows a stellar start by food delivery firm Zomato Limited In July. Berkshire Hathaway Inc-backed Paytm and private equity firm TPG-backed Nykaa have also applied for IPO. Ride-hailing firm Ola, also backed by SoftBank, is also set to enter the markets.
Oyo, in which SoftBank holds a 46% stake and is one of its biggest bets, has faced months of layoffs, cost-cutting and losses during the global health crisis.
Its founder and chief executive Ritesh Agarwal 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 $5 million investment from Microsoft Corp, Kotak Mahindra Capital, J. P. Morgan And Citi is the banker advising Oyo on the IPO, the source said.
The hotel aggregator is looking to get listed in India’s financial capital Mumbai and its IPO is pegged at between $1 billion and $1.2 billion, the source said, adding that it would involve a fresh issue of shares and an offer for sale from existing shareholders.
Oyo did not immediately respond to a request for comment.
Listing plan follows a stellar start by food delivery firm Zomato Limited In July. Berkshire Hathaway Inc-backed Paytm and private equity firm TPG-backed Nykaa have also applied for IPO. Ride-hailing firm Ola, also backed by SoftBank, is also set to enter the markets.
Oyo, in which SoftBank holds a 46% stake and is one of its biggest bets, has faced months of layoffs, cost-cutting and losses during the global health crisis.
Its founder and chief executive Ritesh Agarwal 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 $5 million investment from Microsoft Corp, Kotak Mahindra Capital, J. P. Morgan And Citi is the banker advising Oyo on the IPO, the source said.
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