Oyo is planning to rename its parent company, Oravel Stays, as it increases its focus on premium offerings and plans to launch an initial public offering (IPO) soon.
In a post on the social media platform X, Oyo founder Ritesh Agarwal invited name suggestions for the parent firm. He offered a prize of Rs 3 lakh to the winner along with a chance to meet him.
“We’re renaming the corporate brand behind it all,” he said. “We believe it’s time the world had a new kind of global brand — born in India, but built for the world.”
The company is pursuing an aggressive premiumisation strategy in the country, betting on rising incomes and demand for higher-end accommodation. For this, it is moving up from its original Oyo to Townhouse Hotels.
In the last one year, the hotel operator has grown its five-star Sunday brand from four to around 14 properties. The number of its mid-tier Townhouse properties has risen exponentially from 100 to over 1,000 locations during the same period.
In the UK, it is planning to invest around Rs 450 crore over the next three years to expand its premium portfolio. Last year, it opened the first Sunday Lansbury Heritage, in London’s Canary Wharf. It also has significant plans in the US and South America after the $525 million purchase of G6 Hospitality.
According to people in the know, the company is also launching a separate mobile application for its premium properties.
Recently, the company restarted the talks to launch an IPO and called on bankers for pitches. It is aiming for a valuation of around $6-8 billion, according to people close to the development. According to reports, Oyo has arranged for five investment banks to give a crucial presentation to its key shareholder, SoftBank, next month in London.
This meeting would be crucial in determining the timeline for the IPO.
In a townhall earlier this month, Agarwal told the employees that it has become most profitable Indian startup with a profit after tax of Rs 623 crore in the 2024-25. This would be 172% higher than Rs 229 crore in the preceding year.