It’s OH-NO! for OYO

The largest shareholder in IPO-bound Oyo, has slashed the firm’s valuation by 20%, to 2.7 billion from an earlier $3.4 billion after benchmarking it against peers with similar operations. Oyo had previously reached a valuation of $10 billion in a 2019 funding round.

OYO\’s latest filings showed narrower (18.9 billion rupees) losses and a rebound in sales for the year through March 2022 and the following three months.

The lodging firm filed a fresh round of financial documents with India’s market regulator on Monday as it prepares for an IPO after cost cuts and recovery in travel helped it reduce losses. It expects approval from SEBI for the public debut soon and aims to tap the market at a valuation of about $5 billion early next year.

OYO was targeting a valuation of about $9 billion in its IPO after preliminary conversations with potential investors.

Source: The Economic Times