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OYO IPO to have $300 million secondary component, Ritesh Agarwal unlikely to offload

OYO founder Ritesh Agarwal has over 30 percent stake in the company.

September 24, 2021 / 03:28 PM IST
Ritesh Agarwal.

Ritesh Agarwal.

OYO's $1-1.2 billion initial public offering (IPO) will have around 20-25 percent secondary component. However, founder Ritesh Agarwal is unlikely to offload any stake, according to sources privy to the development.

Agarwal has over 30 percent stake in the company.

The company which was last valued at $9 billion is targeting a valuation of around $12-14 billion.

The Softbank-backed hospitality firm is all set to file for an IPO as early as the next week, Moneycontrol reported on September 23.

In July, Moneycontrol first reported that the company was aspiring for an IPO by the end of 2021.

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The company which has been recovering from the pandemic has completely changed its model to revenue share as compared to the earlier one where it would pay the hotel partners a minimum guarantee to work with OYO.

It is also heavily focusing on technology and recently announced a partnership with global tech giant Microsoft to develop smart room experiences for travelers such as customized in-room experiences.

The partnership happens along with a strategic investment of $5 million from Microsoft in the company.

The company has also launched a self sign up service which would allow hotel owners to go live on the platform in 30 minutes. The move is expected to shore up the number of hotels on the platform which saw a massive decline because of the pandemic.

Oyo did not immediately respond to media query.
Priyanka Sahay
first published: Sep 24, 2021 03:10 pm
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