Daybreak Third time unlucky — why Softbank pulled the plug on Oyo’s latest IPO attempt
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May 18, 2025 Oyo's journey to an IPO is a rollercoaster of delays and investor skepticism. Despite recent victories and strong profits, the shadow of SoftBank's influence looms large. With fierce competition and high expectations from investors, the hospitality chain faces increasing pressure. The podcast dives into why Oyo is struggling to go public and how its business model is under scrutiny. Tune in for insights into the challenges that could redefine Oyo's future.
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OYO's Profit vs IPO Delays
- OYO has become India's most profitable startup in FY24 with profits rising over 170%.
- Despite this, its IPO plans face delays and investor skepticism from its largest backer, SoftBank.
Investor Skepticism on IPO
- Public market investors are more discerning than venture capitalists and demand solid, credible earnings.
- SoftBank delayed OYO's IPO to wait for stronger financial performance and a better valuation.
OYO's Franchise Model Limits Control
- OYO's business model relies on franchising hotels rather than owning them.
- It falls short of competitors by lacking full operational control over hotel location, design, and service standards.