Oyo accelerates IPO plans as debt repayment deadline nears: Report
The creditors have reportedly insisted that founder Ritesh Agarwal pay off the dues of $383 million he borrowed if the start-up does not have an IPO by October
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Hospitality chain Oyo Hotels is reportedly accelerating its IPO as the debt repayment deadline approaches.
According to a report by the Bloomberg news agency, creditors have insisted that founder Ritesh Agarwal pay off the dues of $383 million he borrowed if the start-up does not have an IPO by October.
In case the company is planning to make a debut in the Indian stock exchanges, then creditors may allow a delay in the repayment until 2027, the news agency reported.
The 31-year-old entrepreneur borrowed $2.2 billion in 2019, achieving a guarantee from SoftBank Group's Chairman Masayoshi Son to increase his stake in Oyo and gain strategic control over the company. The loan amount was restructured in 2022, and Agarwal has yet to pay it back.
SoftBank has a 40 percent stake in Oyo Hotels while Agarwal owns 30 percent stakes.
Oyo has aimed to become a publicly listed company several times, but external circumstances hammered all its plans. Now, the hospitality startup is in discussion with bankers for an IPO with a valuation of $5 billion.
Agarwal founded Oyo in 2013. Thereafter, he won the backing of SoftBank's Son. However, during the Covid-19 pandemic, the company suffered massive setbacks. The company gradually recovered from its losses. It eked out a small profit for the fiscal year through March 2024 as sales recovered.
In January 2025, Oyo raised $65 million from Redsprig Innovation Partners, Agarwal's Singapore-based investment firm. In 2024, he led $175 million through his Singapore-based fund, Patient Capital.
