Bengaluru: Ritesh Agarwal’s Pioneering Aggregation Venture, Oyo Hotels & Homes, has submitted an IPO to collect Rs 8,430 Crore ($ 1.2 billion) on the Indian market.
Oyo joins many startups in knocking on the public market.
Zomato has a successful Indian IPO in July, and a new job that was equally successful in the US last month.
Nykaa, Paytm, and Policybazaar are other people who are expected to immediately submit.
The IPO OYO price band is not disclosed in the draft Red Herring Prospectus (DRHP) submitted with Sebi.
Reuters’s report said Oyo was looking for a $ 10 billion rating to $ 12 billion.
The IPO consists of 83% or RS 7,000 fresh stock crore.
The remaining 17%, or Rs 1,430 Crore, will be an offer for sale.
The hotel aggregator plans to use the results of new problems towards paring debt, payment in advance of a particular loan by its subsidiaries, for acquisitions, and to expand their tracks.
Agarwal and several investors in the company, including Venture Lightspeed partners, Sequoia Capital, Ride-Havish China Didi, GreenOaks Capital, Airbnb, and Microsoft, will not cancel each share in the offer.
Softbank, Grab, China Lodging, and Global Ivy Ventures will all sell small shares of each company have the choice to increase up to 1,400 crore rs in pre-IPO placement.
Founded in 2012 as Velavel Stays, OYO technology platform has reshaped the fragmented global hospitality industry, especially small and medium-sized hotels.
Agarwal, then 18, Launched Oravel as a bed & breakfast aggregator and serving apartment in Delhi.
The following year, he won the Fellowship of Peter Thiel, a two-year grant, $ 100,000 for young people who want to build new things instead of sitting in class.
The same year, Oravel became Oyo.
Oyo today has more than 157,000 properties in more than 35 countries.
India, Indonesia, Malaysia and Europe are the biggest markets.
The app is the most downloaded accommodation application in Asia and the third largest in the world in 2020, according to the App Insights Infider Tower sensor.
Most companies now work on the franchisee model, where most investments are made by hotel owners.
Oyo provides a booking platform, and ensures standardization of facilities and services.
Pandemics have a major adverse impact on business, forcing companies to end the practice of providing a monthly minimum guarantee or fixed payment commitment.
Oyo’s income fell 70% to Rs 4,157 Crore last year due to a pandemic.
But it also narrowed its loss to Rs 3,943 Crore, compared with RS 13,122 Crore in the previous year.
The company recently said it would employ more than 300 technology professionals to help him become a full stack technology provider for small and medium-sized hotels and houses.