In the world of travel and budget hotels, one Indian name that has made global headlines is OYO. Whether you’re a college student booking a weekend getaway or a business traveller trying to save money on work trips, there’s a high chance you’ve stayed in an OYO room. But did you know that OYO is not yet listed on the stock exchange?
OYO, officially known as Oravel Stays Ltd., was started by Ritesh Agarwal in 2012 when he was just 19 years old. He saw a big problem—India had many budget hotels, but the quality and service were inconsistent. Some had clean rooms but bad bathrooms; others were affordable but not safe or welcoming. Ritesh decided to change that.
Over the years, OYO has transformed from a small startup into a global hospitality platform. It started with budget hotels in India, but soon spread across Southeast Asia, Europe, and the Middle East. Today, it operates in 35+ countries and over 800 cities.
Now, there’s a lot of excitement because OYO is preparing for its IPO (Initial Public Offering). This means the company plans to sell shares to the public and become a listed company. It already filed a confidential document called a DRHP (Draft Red Herring Prospectus) with SEBI in April 2025.
A DRHP is the first step for any company going public. It contains all the key details like business model, financial performance, risks, and how the company plans to use the money raised from the IPO.
Everyone—from big investors to retail buyers—is watching this move closely.
OYO’s Founding, Evolution, and Growth
Ritesh Agarwal’s idea for OYO didn’t come from a textbook. It came from his own travel struggles. As a teenager travelling across India, he found it hard to get clean, affordable, and reliable rooms. That real-world experience gave him the idea for OYO.
In its early days, OYO tied up with small hotel owners. It gave them a brand name, some money for renovation, and basic tech tools. In return, these hotels joined the OYO network. Over time, OYO moved beyond just budget hotels and started offering:
- Premium stays
- Vacation homes
- Corporate rooms
- Long-stay rentals
Today, OYO has become a travel tech company with a wide mix of property types. You’ll find OYO rooms in cities, small towns, tourist spots, and even international locations like Indonesia, Dubai, and London.
OYO’s growth has been massive:
- Over 157,000 storefronts globally
- Present in more than 35 countries
- Operating in 800+ cities
This expansion didn’t happen overnight. It came from learning, adapting, and using Ritesh’s real-life experience of what Indian and global customers actually want.
OYO’s Technology-Driven Model
Unlike traditional hotel chains that build or buy properties, OYO follows an asset-light model. That means:
- It doesn’t own most properties
- It partners with hotel owners
- It gives them tech, branding, and business support
This model helps OYO expand faster, spend less, and offer better deals.
The real secret behind OYO’s scale is technology. It has built a strong tech platform to help both hotel owners and customers. Here’s how:
- OYO OS: A digital system for hotel partners to manage bookings, revenue, reviews, and services
- Co-OYO: A revenue-sharing program that makes hotel owners feel like business partners
- OYO App: For customers to book rooms, get discounts, and read reviews
- OYO 360: A self-onboarding platform for new hotel partners
- OYO Wizard: A loyalty program offering special discounts to repeat customers (with over 10 million users)
These innovations show how OYO uses smart tools to simplify hotel operations and enhance the guest experience. That’s what makes it stand out.
OYO’s Global Recognition and Investor Trust
OYO is not just another Indian startup. It has become a globally recognised brand. Here’s why:
- Active in 800+ cities worldwide
- Over 157,000 hotels and homes in its network
- Top player in budget and mid-range hotels in India and Southeast Asia
It has also attracted some of the biggest investors in the world:
- SoftBank Group (Japan)
- Sequoia Capital
- Lightspeed Venture Partners
These firms have invested hundreds of crores in OYO, showing their trust in its future.
Just like people trust Zomato for food and Ola for rides, OYO has earned its place as a trusted name in budget travel and stays.
OYO’s Struggles, Recovery, and Profitability
OYO has not always had it easy. It faced challenges like:
- Complaints about service
- Hotel partner issues
- Layoffs and restructuring
- Massive losses during COVID-19
But in the last two years, the company has worked hard to bounce back. Its specific strategies include:
- Focusing on core and profitable markets (like India, Indonesia, and the US)
- Cost optimization by reducing unnecessary expenses
- Improved revenue management with smarter pricing tools and better hotel partner support
- Strategic acquisitions like Checkmyguest in France
In FY24, OYO reported its first-ever full-year profit of ₹229 crore. And in Q1 of FY25, it posted a PAT (profit after tax) of ₹132 crore—up from a ₹108 crore loss in the same quarter last year.
Ritesh Agarwal has also increased his personal investment, recently pumping in ₹830 crore through Patient Capital, raising his stake from 29.97% to 32.57%.
OYO’s Financial Model and IPO Plan
OYO earns from:
- Booking commissions
- Technology services
- Franchise and lease rentals
COVID-19 hurt its revenue, but travel demand has bounced back. In the last year:
- Revenue grew in India and Europe
- Expenses came down
- Profit margins improved
IPO Details (Expected):
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Timeline: 2025
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Size: ₹8,000 to ₹10,000 crore
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Purpose:
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Repay debts
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Build new products
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Expand internationally
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If the IPO succeeds, OYO could become India’s biggest listed travel-tech brand.
Will OYO Join Big Indices Like Nifty 50?
Indices like Nifty 50 track India’s top companies. For OYO to be included, it must show:
- Strong market capitalization
- Good public shareholding
- High trading volume
If the stock performs well after listing, OYO may enter the Nifty Next 50 within 6–12 months—just like Zomato and Nykaa did.
But Nifty 50 may take longer. Mutual funds and institutional investors will also wait and watch how the company handles growth and governance.
Factors That Will Decide OYO’s Long-Term Success
After the IPO, OYO needs to focus on:
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Customer Experience
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Fast check-ins, clean rooms
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Strong support and loyalty programs
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Hotel Partner Support
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Transparent revenue sharing
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Tech help and relationship management
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Technology & AI Innovation
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Smart pricing tools
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AI for dynamic revenue optimization
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Premium & Corporate Segments
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Grow partnerships with 3-star and 4-star hotels
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Target long-stay and co-living demand
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Corporate Governance
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Clean financial reporting
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Regular investor communication
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Handling Competition
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Compete with Airbnb, FabHotels, and Treebo
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Offer more consistent, tech-driven value
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What OYO’s IPO Means for Indian Investors
OYO’s story is about solving a simple problem—affordable travel. From Ritesh Agarwal’s early struggles to global success, the company has shown the power of experience, technology, and smart planning.
Now with a potential IPO in 2025, Indian investors can finally buy a share of OYO.
But every IPO has risks. OYO’s success will depend on market conditions, investor sentiment, and how well the company handles future competition and growth challenges.
If things go well, OYO could become a part of major stock indices and offer strong returns. If not, market volatility could affect stock performance—just like we’ve seen with other tech listings.
OYO’s IPO is not just about listing a company—it’s about India’s travel-tech dream going global. With solid profits, smart tech, and a bold founder leading the charge, OYO is ready for its next chapter.
For investors, it’s a mix of opportunity and caution. But one thing is certain: OYO’s IPO will be one of the biggest stories in India’s stock market in 2025.
