OYO, the SoftBank-backed hospitality and hotel aggregation platform, delays its IPO for the third time since its first attempt in 2021. The latest setback comes as its largest investor, SoftBank, advises the company to hold off until it strengthens its financial position.
Currently, SoftBank owns over 40% of OYO, and its influence remains significant. Sources say the IPO delay ties into conditions around a $2.2 billion personal loan OYO’s founder took in 2019 to boost his stake in the company. That loan, guaranteed by SoftBank’s Masayoshi Son, has repayment terms linked to the company going public.
OYO had refiled its IPO papers with Indian regulators but pulled back again in May 2024. Market volatility and macroeconomic uncertainty continue to affect IPO strategies for large startups across India, including OYO, EV-maker Ather Energy, and Urban Company — all of which consider either delaying or reducing the size of their public offerings.
While OYO still remains one of India’s most recognizable tech startups, it now finds itself navigating the same cautious waters as many late-stage private companies facing unpredictable investor sentiment and market dynamics.
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