OYO has kicked off the process for a public listing by filing documents with the Securities and Exchange Board of India.
The Gujurat, India-based company is seeking to raise about $1.2 billion, mostly through the issue of fresh shares as well as some existing shares.
Proceeds from the issue of shares are expected to go towards repayment of borrowings and growth initiatives.
In its Draft Red Herring Prospectus (DRHP) document, OYO describes itself as a “leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem.”
OYO, which was founded in 2012, says its focus is on reshaping the short-stay accommodation market by helping owners “transform fragmented, unbranded and underutilized hospitality assets into branded, digitally-enabled storefronts with high revenue generation potential.”
The three largest shareholders of the company are OYO founder Ritesh Agarwal who is believed to own about a third, his holding company RA Hospitality Holdings and SoftBank Vision Fund.
According to the DRHP, OYO had net losses of approximately $318 million in 2019, $1.8 billion in 2020 and $531 million in 2021.
The company’s total income for the year to March 31, 2021 was $560 million compared with $1.8 billion year-on-year.
OYO recently entered into a partnership with and received investment from Microsoft with sources putting the investment at $5 million.
The companies plan to work together to develop travel and hospitality technology including smart room solutions.
Earlier this year the company announced a $660 million loan to be put towards debt repayment, product development and strengthening its balance sheet.
OYO also raised $7.4 million in Series F funding in January.
Prior to the pandemic, OYO announced ambitious growth plans in both the U.S. and Europe through both its hotel franchise program and vacation rental arm. The company acquired @Leisure Group for €360 million in May 2019.
OYO's chief operating officer, Abhinav Sinha, spoke to Phocuswire recently about the company's strategy for COVID recovery and areas for growth.
OYO currently offers more than 43,000 hotels and 150,000 homes in 80 countries around the world.