SoftBank-backed OYO delays IPO for the third time: Report

Hotel aggregator OYO has pushed back its public listing plans amid market uncertainty and setback from its largest investor, SoftBank, according to a Bloomberg report.

The report said that the Japanese investment conglomerate advised the company to hold back its listing plans until it shows stronger financial improvement.

According to Tracxn data, SoftBank holds a 40.5% stake in the company.

This is the third time OYO has deferred its IPO, with its first attempt to list dating back to 2021. The company had tried to list on public bourses again, only to withdraw its draft IPO papers by May 2024.

The report also said that OYO’s founder, Ritesh Agarwal, had pushed for a quick IPO to meet the conditions of a restructured $2.2 billion loan he had secured in 2019 for increasing his stake in the company.

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This loan was personally guaranteed by SoftBank’s Masayoshi Son and had a deadline for the first installment in December. Lenders had indicated that they would be willing to extend the repayment timeline if OYO listed this year.

According to the report, SoftBank may help Agarwal get an extension on the loan in exchange for delaying the IPO.

OYO joins a list of late-stage startups that are looking to navigate broader market uncertainty trickled down from reciprocal tariffs levied by US President Donald Trump that has sent shivers throughout private and public markets, alike.

Indian startups are considering a range of options, which include deferring IPOs and trimming down the size of their offerings, as in the case of EV-maker Ather Energy and, most recently, Urban Company.