Oyo’s IPO Dilemma, Cashify Partners Google, and Hudle launches GRIP

In the easy-money years, Oyo was the poster child of blitzscale bravado - aggressive global expansion, heady narratives, and a peak valuation of $9.6 billion in 2019. When the “free money” era ended and rates rose, that tide went out fast. SoftBank internally lowered its valuation of the company to about $2.7 billion in mid-2022, a reset that mirrored a broader tech correction and a tougher read on Oyo’s operational reality from China to the U.S. to Japan. The market hadn’t merely cooled; the narrative of limitless TAM and frictionless scale had been repriced.

Oyo’s first serious run for an IPO collided with the regulator, back in 2021. SEBI sent the company back to the drawing board, flagging holes in disclosures, valuation logic, and the basis of offer price; asking for clearer, updated KPIs such as occupancy, room nights, GBV, and customer retention; and pressing for transparent summaries of outstanding litigations, from the Zostel dispute to CCI scrutiny and tax matters. Investor-protection 101: no IPO without a clean window into risks, numbers, and governance. Oyo delayed rather than bulldoze through, a tacit admission that the draft needed more than cosmetic edits.

Oyo’s second attempt at going public also stumbled. In May 2024, the company pulled its IPO application because it was in the middle of a financial overhaul - raising $450 million in fresh debt to refinance an older, costlier loan. The refinancing was a smart move, cutting interest outgo and cleaning up the balance sheet, but it also meant the company’s financial statements would look dramatically different. SEBI required updated numbers, forcing Oyo back to the filing table before it could make another run at the markets.

Behind the scenes, incentives diverged. Founder Ritesh Agarwal wanted the IPO - he’d taken a ~$2.2 billion loan in 2019 to raise his stake, with repayment timelines effectively linking his personal clock to the listing window. SoftBank, sitting on ~46% - one of its largest India stakes - wanted the opposite: wait, fix, and time the exit. With a mixed track record of Indian exits (a $4 billion Flipkart sale on the win column; far choppier outcomes and write-downs elsewhere), SoftBank could not afford another poorly priced debut. Its board influence showed up in the final outcome: postpone now, earn the right to list later.

To Oyo’s credit, the company then did the hard, unfashionable work the post-2021 market demands. It refinanced a $450 million loan and strung together ten consecutive quarters of positive EBITDA, reporting a 172% jump in PAT for FY2025 on the back of cost control, consolidating core markets, and a tilt toward premium and mid-market supply. Disclosures were sharpened in line with the regulator’s KPI regime; valuation hopes were reset to a more defensible $7-8 billion instead of the last cycle’s double-digit dreams. This is what a grown-up second act looks like: less sizzle, more scaffolding.

So are today’s IPO plans real or opportunistic? Both truths can coexist. The company is preparing to refile its DRHP (with an early-2026 window in sight), but SoftBank remains the metronome - green-lighting only if fundamentals and sentiment rhyme. The unresolved frictions haven’t magically vanished: litigation overhangs still need crisp daylight; governance must withstand public-market glare; and SEBI’s demand for fresh, comparable metrics won’t be gamed. We're optimistic about Oyo's upcoming IPO, but there's a significant 35% chance it will get pushed back again, especially if the markets become unstable or more information is needed.

None of this negates the founder’s urgency or the investor’s caution - it explains the détente. Agarwal needs the market window; SoftBank needs the best exit among its India bets; SEBI needs the public protected. The compromise is a sequence: show durable profits, keep the balance sheet clean, resolve material disputes, and then go to market when pricing rewards the work rather than punishes the past. In that light, Oyo’s latest-try IPO looks less like a sprint and more like parole - earned by behavior, revocable by relapse.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Tera Naam Liya, Tujhe Yaad Kiya”: Cashify partners Google to sell refurbished Pixel phones

Google wants more Indians holding a Pixel in their hands without the flagship price tag. Through a tie-up with Cashify, it is rolling out an Authorised Refurbished Phone Sale featuring devices like the Pixel 7 and Pixel 8 Pro.

Think premium Google hardware, certified second life, and a gentler hit on your wallet.

Read more here

“Khelo Bachho”: Hudle launches GRIP rating system for racket sports

Hudle just served up GRIP, a new rating system that scores racket sport players on a 1-7 scale based on real match results. No more vague tags like “beginner” or “intermediate”, your game now gets a clear number.

It is all about tracking progress, matching the right opponents, and making the sport more competitive and fun.

Read more here

“Kar Chale Hum Vida”: Exotel Cofounder Ishwar Sridharan Quits

After 14 years of building Exotel into a cloud telephony powerhouse, cofounder and COO Ishwar Sridharan has called it a day. In a heartfelt note to employees, he said it was his “most remarkable and productive” professional journey.

From SAP Labs and Yahoo! to shaping Exotel since 2011, Sridharan leaves behind an institution “built to last.”

Read more here

“Janmo Ke Saathi”: TBO Tek To Acquire Classic Vacations For $125 Mn, Stock Surges 15%

TBO Tek is jet-setting into new territory with a $125 Mn acquisition of Classic Vacations, sending its stock soaring 15%.

The travel tech firm plans to keep Classic as an independent brand while supercharging it with TBO’s tech and global reach. For TBO, which has been expanding across continents, this deal is another stamp on its passport.

Read more here

1. PlatinumRx has raised $6 Mn to expand its dark store network and scale operations, aiming to serve over a million customers in the next year. The epharmacy helps users find exact substitute medicines, riding the quick-commerce wave in healthcare.
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2. Seekho has raised $28 Mn in a Series B round led by Bessemer to boost its bite-sized learning platform. The edtech plans to roll out new content formats and build an AI stack to power its educational videos.
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3. Zanskar has secured Rs 2.8 Cr in seed funding led by Zeropearl VC to expand its pain-care and wellness portfolio. The Gurugram startup will channel the funds into R&D, digital marketing, and offline retail growth alongside its D2C play.
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4. StockGro has raised Rs 50 Cr in venture debt from Trifecta Capital, adding to its earlier Rs 205 Cr funding this year. The social investment platform plans to use the fresh capital to strengthen its market advisory and growth initiatives.
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5. Edgehax has secured Rs 1.39 Cr in seed funding from Inflection Point Ventures to scale its edge AI hardware operations. The startup will use the funds to boost manufacturing, develop new products, and expand into global markets.
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6. WaterScience has raised Rs 1.4 Cr from Velocity, taking its total funding from the firm to Rs 7 Cr since 2020. The D2C water solutions brand will use the capital to fuel growth, expand product lines, and strengthen marketing.
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