OYO IPO Prospects in 2025–26: Valuation Reset, Profit Turnaround & Strategic Rebrand to Prism

IPOName: OYO (Prism) IPO; ListingDate: Q4 FY26 (anticipated); IPOSize: TBD; PriceBand: TBD; OpenDate: TBD; CloseDate: TBD; Valuation: $7–8 Billion (target); Parent: Oravel Stays Ltd (rebranded Prism); Major Shareholder: SoftBank; Key Markets: India, SE Asia, Europe, US;

Overview: Rebranding, Profitability, and Global Reset

In a bold strategic shift, OYO’s parent company, Oravel Stays Ltd, has rebranded to Prism—a name reflecting its expanding international ambitions and diversified portfolio across markets. This comes at a time when the company is finally turning a steady profit, making its long-awaited IPO more achievable.

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Financial Turnaround & Profit Momentum

OYO's financials show a dramatic recovery:

• FY25 PAT reached ₹623 Cr—making it India’s most profitable startup that fiscal—with 172% YoY growth and EPS rising to ₹0.93. Adjusted EBITDA stood at ₹1,132 Cr (27% growth). :contentReference[oaicite:1]{index=1}
• Q1 FY26 PAT doubled to ₹200 Cr on a revenue rise to ₹2,019 Cr (+47% YoY)—with GBV surging 144% to ₹7,227 Cr. :contentReference[oaicite:2]{index=2}

IPO Roadmap & Valuation Expectations

• OYO has resumed IPO discussions, targeting a DRHP filing in **November 2025** and a listing in Q4 FY26 with a valuation of **$7–8 billion**. :contentReference[oaicite:3]{index=3}
• Earlier IPO attempts (2021, 2024) were shelved due to financial volatility and a pending debt refinancing plan. :contentReference[oaicite:4]{index=4}
• The renewed push is driven both by recovery in profitability and a looming debt repayment deadline tied to Ritesh Agarwal's $2.2B leveraged buyout finance. :contentReference[oaicite:5]{index=5}

Valuation Reset & Private Capital Moves

OYO’s valuation has seen major recalibrations:

• SoftBank internally marked down OYO’s valuation from $3.4 B to **$2.7 B**, prompting public speculation. :contentReference[oaicite:6]{index=6}
• A subsequent funding round pegged OYO at **$2.5 B**, a sharp fall from its $10 B peak. :contentReference[oaicite:7]{index=7}
• Yet, investor interest is growing—Nuvama Wealth acquired shares valuing OYO at **$4.6 B** via a ₹100 Cr secondary purchase. :contentReference[oaicite:8]{index=8}

Expansion & Restructuring Highlights

Behind the turnaround is a strategy of operational focus:

• OYO has trimmed operations in unprofitable markets like the US and China, doubling down on India, Southeast Asia, Europe, and the Middle East. :contentReference[oaicite:9]{index=9}
• It acquired G6 Hospitality (parent of Motel 6) in a $525 M all-cash deal—boosting its footprint in the US. :contentReference[oaicite:10]{index=10}

Community Sentiment & Market Buzz

Here’s what Reddit users are saying:

> “OYO just reported another profit… they’re aggressively pushing their unlisted shares… early investors want out?” > — Reflects skepticism about rush to sell pre-IPO shares when profitability improves. :contentReference[oaicite:11]{index=11}

> “Valuation is down 79%… paper net worth is highly inflated.” > — Commentary on founder’s perceived overvaluation before correction. :contentReference[oaicite:12]{index=12}

Why Investors Should Watch (and Caution Flags)

Strengths:

• Turned consistently profitable across eight quarters.
• Global portfolio backed by a brand that is strong in India.
• Regained investor confidence—strengthened by M&A and regional focus.

Risks:

• Valuation still volatile—private markdowns signal caution.
• Legacy debt continues to shadow timelines.
• Customer service and quality complaints may impact brand trust. :contentReference[oaicite:13]{index=13}

Final Word

OYO—soon to be Prism—is on the cusp of an IPO after years of financial turbulence. With renewed profitability, strategic rebrand, and focus on key markets, it is positioning for a public debut in late 2025. That said, valuation resets and legacy debt remain caution points for investors. For growth-oriented portfolios, OYO offers a high-risk, high-reward play.

Stay tuned to GMPRadar.com for updates on OYO’s IPO filing, listing date, DRHP, GMP trends, and market reaction.