Oyo, the Indian hospitality giant, has once again postponed its initial public offering (IPO), marking the third such delay. This decision comes amid opposition from its largest shareholder, SoftBank, and prevailing market volatility.
## SoftBank’s Influence on Oyo’s IPO Timeline
SoftBank, holding over 40% of Oyo’s shares, has expressed reservations about the company’s plan to list in October 2025. The investment firm has urged Oyo to delay the IPO until it demonstrates stronger financial performance. This stance reflects SoftBank’s cautious approach, especially considering the current market conditions where India’s Nifty 50 index remains over 7% below its previous peak.
## Financial Performance and Market Conditions
Despite reporting a six-fold increase in net profit to ₹166 crore for the third quarter of FY25 and a 31% year-on-year revenue increase to ₹1,695 crore, Oyo faces challenges. The company’s revenue for FY24 was ₹5,389 crore, slightly down from ₹5,464 crore in FY23. These figures, coupled with market volatility, have contributed to the decision to delay the IPO.
## Debt Repayment Pressures
Founder Ritesh Agarwal is under pressure to meet repayment terms of a $2.2 billion loan secured in 2019 to increase his stake in Oyo. The loan, backed by SoftBank’s Masayoshi Son, has a December repayment deadline. Lenders may consider extending the timeline if Oyo lists this year, but the IPO delay complicates this scenario.
## Previous IPO Attempts and Future Plans
Oyo’s initial IPO application in 2021 sought a $12 billion valuation but was returned by the stock market regulator in January 2023. The company withdrew its draft IPO documents in May 2024, which included plans to raise up to $450 million through dollar bonds. Now, Oyo aims to go public by March 2026 at a reduced valuation of $7 billion.
## Broader Market Implications
Oyo’s decision aligns with a broader trend of companies postponing or scaling back IPOs due to market volatility. For instance, LG Electronics’ Indian unit and e-scooter maker Ather Energy have also delayed or downsized their IPO plans.
## Conclusion
Oyo’s repeated postponement of its IPO underscores the complex interplay between investor expectations, financial performance, and market conditions. As the company navigates these challenges, stakeholders will closely monitor its strategic decisions and financial health in the lead-up to its anticipated public listing in 2026.
