Budget hotel aggregator Oyo has postponed its third attempt to go public, citing market volatility and pushback from its largest investor, SoftBank, Bloomberg reported on Friday. Sources told Bloomberg that SoftBank has advised the company to hold off on an IPO until its financial performance shows stronger improvement.
This delay marks Oyo’s third deferred IPO since 2021. The current market environment has been deemed unfavorable, with investor sentiment weakened partly by global uncertainty and reduced risk appetite linked to US President Donald Trump’s tariff policies.
SoftBank’s Vision Fund is Oyo’s largest shareholder, with a stake exceeding that of founder Ritesh Agarwal, who owns over 30% of the company. Agarwal had urged for a quick IPO to meet conditions related to a restructured $2.2 billion loan he secured in 2019 for raising his stake in the company, the report said.
The loan, personally guaranteed by SoftBank founder Masayoshi Son, had a payment deadline for the first installment in December, with lenders indicating they may extend the repayment timeline if Oyo is listed this year.
However, SoftBank may help Agarwal get an extension on the loan in exchange for delaying the IPO, the report added.
(With inputs from Reuters)