Oyo, the high-profile affordable lodging startup that filed for an initial public offering last year, is considering slashing its fundraising target by half or even shelving the debut, according to people familiar with the matter. Faced with headwinds including slumping stock markets, Oyo-operator Oravel Stays Ltd. could clip its Indian IPO from the nearly $1 billion initially sought to half that, the people said, declining to be identified discussing internal matters. It’s considering also halving its expected valuation from the $12 billion originally targeted, they said. Oyo could even decide to suspend its IPO plans, the people said. The deliberations underscore investors’ reluctance to buy into IPOs during a time of extraordinary market turmoil.
The Airbnb Inc.-backed startup had already considered lowering its target valuation to $9 billion earlier this year after Paytm’s disastrous debut -- but that was before the Ukraine conflict and inflationary concerns ignited a global tech selloff. Oyo, backed by investors including SoftBank Group Corp and Sequoia, made preliminary filings in September aiming for an IPO in early 2022. Nearly six months later, the initial documents, known as a draft red herring prospectus, have yet to get a green light from India’s stock market regulator.
No comments:
Post a Comment