Budget hotel aggregator Oyo has once again delayed its plans to go public, marking its third postponed IPO attempt since 2021. The decision, reportedly influenced by market volatility and objections from its largest investor, SoftBank, reflects ongoing challenges in the current financial landscape.
According to sources, SoftBank has urged Oyo to wait until it demonstrates stronger financial performance before proceeding with an IPO. The broader market conditions, impacted by global uncertainty and a decline in investor risk appetite—partly attributed to tariff policies under U.S. President Donald Trump—have further contributed to the delay.
SoftBank’s Vision Fund, the largest shareholder in Oyo, holds a stake that surpasses even that of founder Ritesh Agarwal, who owns over 30% of the company. According to the report, Agarwal was pushing for a swift IPO to help fulfill terms tied to a restructured $2.2 billion loan he obtained in 2019 to increase his ownership stake in Oyo.
The loan, which was personally guaranteed by SoftBank founder Masayoshi Son, had its first repayment due in December. Lenders had suggested they might extend the repayment deadline if Oyo successfully listed within this year.
However, the report noted that SoftBank may support Ritesh Agarwal in securing an extension on the loan in return for postponing the IPO plans.
Oyo’s decision to delay its third attempt at going public highlights the ongoing challenges the company faces amid market volatility and pushback from its largest investor, SoftBank. While founder Ritesh Agarwal had hoped for a quick IPO to meet obligations tied to a significant loan, the current economic conditions and investor caution have led to a reassessment. The outcome of this delay will depend on how Oyo navigates its financial performance and SoftBank’s influence, with the potential to reshape the company’s future growth trajectory.
