Prism, the parent company of Oyo, files a private IPO application

Oyo parent Prism files draft papers for IPO in third attempt

Prism, the parent company of hospitality platform Oyo, has filed draft documents for an initial public offering (IPO), marking its third attempt to go public, according to people familiar with the matter.

The company had earlier received shareholder approval in December to raise up to ₹6,650 crore (about $740 million) through a primary issue. Prism has now filed its draft red herring prospectus (DRHP) through the confidential route, which allows companies to keep IPO details private and revise plans later depending on market conditions.

Earlier, market regulator Sebi had returned Oyo’s first IPO filing in 2021, asking the company to submit updated financial information. The company later refiled with a smaller issue size, significantly lower than its original $1.2 billion IPO plan. In 2024, Oyo withdrew its draft papers and instead raised funds through a private round.

Valuation likely lower than earlier plans

People aware of the matter said Prism may target a valuation of around $5–7 billion, depending on market conditions. This is lower than the $12 billion valuation the company was aiming for during its first IPO attempt in 2021.

With this filing, Oyo joins several new-age companies preparing for stock market listings in 2026, including PhonePe, Zepto, Boat, Shadowfax and Shiprocket. Ecommerce major Flipkart is also planning an IPO in 2026 and is in the process of shifting its registered office to India.

Strong financial performance

Oyo reported a net profit of over ₹200 crore for the April–June 2025 quarter, according to an internal email sent by founder and CEO Ritesh Agarwal to employees and shareholders. This marked a sharp rise from ₹87 crore in the same quarter last year.

The company’s revenue grew 47% year-on-year to ₹2,019 crore, while its gross booking value jumped 144% to ₹7,227 crore during the quarter. Growth was driven by new hotel additions, higher occupancy, premiumisation and better room utilisation.

Expansion and past funding

In 2024, Oyo raised capital at a valuation of $2.3 billion, sharply lower than its peak valuation of $9 billion during a 2021 funding round led by Microsoft.

The company has also been expanding internationally. In 2024, it acquired G6 Hospitality, operator of the Motel 6 chain in the US, for $525 million, strengthening its overseas presence.