Oyo, the Indian budget hotel chain once noted for its rapid ascent, has withdrawn its IPO application from the Securities and Exchange Board of India (SEBI) for the second time, further dampening its already reduced ambitions.
The Gurugram-based startup, which once boasted a valuation of $10 billion, halted its IPO plans on May 17, according to a disclosure on the regulator’s website. Oyo had originally submitted paperwork to SEBI in 2021 for a public listing but withdrew it and resubmitted in 2023.
SEBI has yet to approve either of Oyo’s applications, raising questions about the startup’s preparedness for public scrutiny. Oyo has been striving to secure a new round of funding at a valuation of $3 billion or less, as reported by Truth Voices earlier this month. Oyo had denied raising capital at that valuation.
Nevertheless, the company is now looking to raise funds at a valuation as low as $2 billion to $2.3 billion, according to a source familiar with the matter who spoke to Truth Voices. To date, it has raised over $3 billion in equity and debt.
Backed by SoftBank, Peak XV, Lightspeed, Airbnb, and Microsoft, Oyo was once celebrated as an innovator in the budget hotel sector. However, recent years have seen the startup face criticism for its business practices, and in 2020, it laid off thousands of employees to reduce costs.
