Oyo (Oravel Stays Limited) is a leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem. It has focused on reshaping the short-stay accommodation space since its incorporation in 2012 and has developed a unique two-sided technology platform focused on addressing key pain points of their Patrons (being the owners, lessors, and/or operators of storefronts listed on their platform) on the supply side and their customers (being travelers and guests who book accommodations at their Patrons’ storefronts through their platform) on the demand side.
Their business model helps their Patrons transform fragmented, unbranded, and underutilized hospitality assets into branded, digitally-enabled storefronts with higher revenue generation potential and provides their customers with access to a broad range of high-quality storefronts at compelling price points.
As of March 31, 2021, Oyo had 157,344 storefronts across more than 35 countries listed on their platform. Oyo has the largest footprint (in terms of hotel storefronts) in its key markets of India & SEA and the second-largest footprint in Europe (in terms of homes storefronts) among full stack short-stay accommodation players as of September 9, 2021.
The entire public offer of Oyo comprises a fresh issue of equity shares aggregating up to Rs. 7,000 crores and an offer for sale of equity shares aggregating up to Rs. 1,430 crores from selling shareholders, SVF India Holdings Limited, A1 Holdings Inc. amongst ot
OYO IPO OBJECTIVE
POSITIVES
- OYO has over 1.5 lakh storefronts across more than 35 countries with the largest footprint in
- terms of hotel storefronts in India and South East Asia.
- Full-stack technology platform driving strong value proposition for its patrons and customers.
- High degree of engagement with its patron and customer community.
- Virtuous flywheel driven by strong network effects.
- Inherent financial strength with strong unit economics.
- Strong and trusted consumer brand.
NEGATIVE
- Continuing impact of the COVID-19 pandemic on the travel industry.
- OYO has incurred losses each year since its incorporation.
- While it has experienced rapid growth in the past, it may not continue to grow on pace with historical rates.
- Any failure to retain existing patrons or customers, or acquire new ones in a cost-effective manner.
- Any negative publicity that can hamper the brand’s image.
- Failure to continue to innovate and develop its platform.
- Lack of control over the actions (criminal inappropriate, or dangerous) of its patrons and customers.
- Dependence on third-party distributors including travel management companies to market and distribute its storefronts
- and distribute its storefronts.
- Ongoing legal dispute between OYO and Zostel Hospitality; any adverse outcome in the legal proceedings can impact OYO’s business.
- Risks encountered by the travel industry
OYO IPO DETAILS
OYO IPO TIMELINE
So, how does OYO IPO Fare in Terms of Financials?
Financial Details in Cr
FINANCIAL REVIEW
OYO IPO VALUATIONS
Face Value = RS1 Per Equity Share
Earnings Per Share (EPS) =
PE Ratio = NA
Return on Net Worth (RONW) =
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