The Indian budget hotel group Oyo, which used to be very successful, has pulled its IPO application from the Securities and Exchange Board of India (SEBI) for the second time. This is a big setback for the company, which already didn’t have high hopes.
According to a notice on the regulator’s website, the Gurugram-based startup, which was worth $10 billion at its peak, scrapped its plans to go public on May 17. Oyo first sent paperwork to SEBI in 2021 to become public, but later took it back and sent it again in 2023.
SEBI has not yet approved either of Oyo’s applications, which makes people wonder if the startup is ready for the public to look closely at it. Technology news site TechCrunch said earlier this month that Oyo has been rushing to get a new round of funding at a value of $3 billion or less. At that price, Oyo had denied that it was collecting money.
A person familiar with the situation told TechCrunch that the company is now trying to raise money at a value of as low as $2 billion to $2.3 billion. So far, it has raised more than $3 billion in debt and stock.
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People used to praise Oyo as a game-changer in the cheap hotel business because it was backed by SoftBank, Peak XV, Lightspeed, Airbnb, and Microsoft. But the startup has been attacked for the way it does business lately. In 2020, it even fired thousands of workers to save money.
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