As a new blow to its already shrunken goals, Oyo, the once-high-flying Indian cheap hotel company, has withdrawn its initial public offering (IPO) application from the Securities and Exchange Board of India (SEBI) for the second time.
On May 17, the regulatory body scrapped the initial public offering (IPO) plans of the Gurugram-based firm, which at its peak commanded a value of $10 billion. Initially, Oyo had submitted papers to SEBI in 2021 for a public listing; however, the company withdrew the paperwork and resubmitted it in 2023.
SEBI has not yet approved either of Oyo’s applications, raising concerns about the company’s readiness for public scrutiny. Eltrys published a story earlier this month revealing that Oyo has been desperately seeking a fresh round of investment worth $3 billion or less. The corporation disputed that it was currently requesting cash at that value.
According to a person familiar with the subject who spoke with Eltrys, Oyo is now seeking to raise capital at a valuation that might be as low as $2 billion to $2.3 billion. To this day, it has successfully raised over three billion dollars in stock and debt. 
Oyo was once considered a disruptive force in the affordable hotel industry. SoftBank, Peak XV, Lightspeed, Airbnb, and Microsoft, among other investors, provided support. However, in recent years, the firm has been under criticism for its business methods. In 2020, the company even fired hundreds of employees in an effort to cut costs.
