Oyo is ready to explore the public market. An eight-year-old Indian budget hotel giant is filing documents with local market regulators for an initial public offering and is about to raise about $ 1.16 billion.
Gurgaon-based start-ups are trying to raise about $ 940 million through the sale of new shares, with the rest reserved for pre-IPO and secondary transactions (sale of shares of existing investors) I am.
The company, which counts SoftBank, Airbnb, Lightspeed Venture Partners, Sequoia Capital India, and Microsoft as investors, and has recently reached $ 9.6 billion, doesn’t provide details on what it wants from individual investors. What we know: As we reported earlier this week, Oyo Seeking more than $ 12 billion in IPO valuation.. And Ritesh Agarwal, the young founder of the startup, has no plans to sell his stake in a public offering.
Today’s submission shows Oyo’s major shift, which has grown too ambitious in the international market in recent years, but modified the course by braking some of those efforts.
Like all other hospitality and travel agencies, Oyo was terribly confused by the pandemic. At one point, startups reported that their businesses were down by up to 60% as several countries implemented blockades as they scrambled to contain the spread of the virus.
However, some of the major markets have opened in recent quarters, showing signs of a rapid recovery in recent weeks. The startup said in today’s filing that four markets, India, Indonesia, Malaysia and Europe, account for about 90% of total revenue.
Oyo has also improved its finances and streamlined its relationship with the hotel. Today’s startups don’t own their own hotels and instead work with over 150,000 partners to help run hotels, resorts and homes. We do not guarantee a minimum guarantee to these partners.
The story of Oyo, now Softbank owns more than 45%, begins in Agarwal, who left the country town in search of better education in Rajasthan. He often visited his friends in Delhi, staying at their homes and renting cheap hotels. At that time, Agarwal, in his late teens, recently dropped out of college and found an affordable hotel struggling to fill his room every night.
Later, Agarwal said in a past conversation that he persuaded hotel owners to mediate a deal permitting hotel refurbishment and began marketing to companies in exchange for future fee cuts.
The deal was quickly successful, and Agarwal now sought to expand its reach using technology to focus on the neglected segments of the market.
That was the beginning of Oyo, which quickly became a success and soon attracted the attention of a fellowship run by the founder of PayPal co-founder Peter Thiel.
Oyo first took on the market-leading position and then began to expand in several markets, including Southeast Asia, Europe, China and the United States. Its aggressive expansion bets have varying success rates. It’s doing well in Europe and Southeast Asia, but expanding into China and North America has proven to be more difficult than startups envision.
In the middle of its expansion, Agarwal, 27, Invest $ 700 million in startups.. That year, he announced plans to spend $ 2 billion through an entity called RA Hospitality Holdings to increase Oyo’s stake from the $ 700 million pre-investment 10% to 30%.
Oyo said in the filing that the app has been downloaded more than 100 million times.
Catherine Shoe contributed to this story.
SoftBank-backed Oyo files for $1.16 billion IPO – TechCrunch Source link SoftBank-backed Oyo files for $1.16 billion IPO – TechCrunch
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