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Oyo's Valuation In Private Market Falls To Around $6.5 Bn

Oyo's share price in the private market had risen to Rs 94 per share, however, in the subsequent days following reports of the markdown of OYO's valuation by SoftBank, the company's valuation dipped by nearly 13 per cent to Rs 81 per share

The valuation of IPO-bound Oyo in the private market has dipped to around $6.5 billion, after reports suggested that SoftBank Group has slashed the valuation of Oyo Hotels on its books by more than 20 per cent.

Oyo disclosed its latest financials in an IPO filing addendum last month, with the numbers showing narrower losses and a rebound in sales for the year through March 2022 and the following three months.

According to the sources, Oyo's share price in the private market had risen to Rs 94 per share, however, in the subsequent days following reports of the markdown of OYO's valuation by SoftBank, the company's valuation dipped by nearly 13 per cent to Rs 81 per share.

The company's losses for the year ending in March 2022 were almost halved. Oyo's operational revenue increased by 21 per cent to Rs 4,781.4 crore in the fiscal year 2022 from Rs 3,961.6 crore the previous year.

Along with a nearly 79 per cent reduction in its EBITDA losses from fiscal 2020 to fiscal 2021, the company's adjusted gross profit margin increased from 9.7 per cent in fiscal 2020 to 33.2 per cent in fiscal 2021. During the first quarter of the current fiscal year, EBITDA further shrank and produced its first positive figure.

OYO was initially seeking a valuation of over $10 billion when it filed the draught prospectus for its first public offering, but it later got ready to accept for a lower valuation of around $7-8 billion.

Oyo had filed its draft red herring prospectus (DRHP) for its first public offering in October of last year (IPO). According to the company's DRHP, the planned offering comprised of a fresh issue of equity shares valued up to Rs 7,000 crore and an offer for sale for Rs 1,430 crore.

Ritesh Agarwal launched Oyo, formerly known as Oravel Stays, in 2012. According to a Bloomberg story, the corporation is now aiming for an initial share sale in early 2023, provided that India's stock market holds up and the country's economic situation improves.

 The startup has reduced operations in countries it traditionally viewed as essential, such as the US and China, and is now concentrating on four primary regions: India, Malaysia, Indonesia, and Europe, where it handles holiday properties.


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