IPO-bound Oyo has announced plans to expand its serviced hotel portfolio to 300 cities by FY2026. This move is a part of Oyo’s bigger plan to increase profitability and financial strength ahead of the potential $7 billion IPO. The travel tech platform is planning an IPO in the March 26 quarter.
Oyo’s Company Serviced Hotel Plan
Oyo introduced company-serviced hotels in FY23, contributing only 2% to the first year’s revenue. Since then, the rapid expansion of this segment has made it Oyo’s fastest-growing business globally. On December 24, Oyo reported adding 700 new company-serviced hotels in just 1 year.
Currently, Oyo operates with over 1,300 company services hotels in India, mostly in the mid to premium service categories, including Townhouse, Townhouse Oak, Capital O, Palette, and SUNDAY. But now the share of company serviced hotels is expected to increase in India, from 24 cities to over 300 cities across India, the company said.
Now, Oyo is focusing its expansion in leisure cities, pilgrimage destinations and business corridors where footfall is high and property owners are open to long-term collaborations with the company. These include:-
- Mohali, Faridabad, and Jalandhar in the north,
- Cuttack, Asansol and Darjeeling in the east,
- Mangalore, Kollam, Port Blair, and Kasaragod in the south and
- Bhilwara, Vapi, Junagarh and Jalgaon in the west.
Oyo’s COO Statement
Varun Jain, Chief Operating Officer of the company, said: “The programme is in line with Oyo’s strategic focus for 2025 for the India market, which aims to drive profitability by enhancing the overall guest experience. These hotels record a higher customer rating of 4.6, compared to the overall average of 4.0. The occupancy rate of these hotels is also 2.7 times higher than other hotels. Their consistent focus on quality service also drives a repeat customer rate that is 1.3 times higher than the rest. The superior ratings reflect better service standards, well-maintained facilities and a seamless guest experience, which results in stronger guest loyalty and repeat stays in our hotels.”
Oyo The Most Profitable Indian Startup, Rs 623 Cr Profit: Ritesh Agarwal
After being caught in the middle of financial controversies, Oyo has turned the tide to a decisive corner. The global hospitality tech platform has become India’s most profitable start-up for FY 25, posting a record 623 crore profit. This is a 172% increase from last year’s profit, based on the latest unaudited financial results, a big signal in the business transformation of the company.
During a recent town hall with employees, the CEO, Ritesh Agarwal, announced this news, marking a milestone moment for the Softbank-backed company as it prepares for an IPO( Delayed but still on cards).
Oyo IPO Status
Oyo IPO is now delayed even after the third attempt to list on the stock exchange. Bloomberg reported that Softbank, which holds more than 40% of Oyo, advised the company to keep its IPO plans aside until its financial health shows a stronger improvement.
This is the 3rd time Oyo has deferred its IPO. The first one in 2021. The company planned to get listed in 2024, only to drop its IPO papers again in 2024. But with recent profitability indications, OYO IPO may soon be around the corner.
Is It Possible To Buy OYO Shares Before IPO?
Currently, Oyo is not listed on the stock market. However, Oyo stock is actively traded in the unlisted share market. Investors can buy and own Oyo pre-IPO shares from Stockify before they get traded in the listed market.