OYO is making its third attempt at the Indian bourses. The hospitality unicorn’s parent PRISM
has filed its updated DRHP with SEBI for an IPO, which will consist entirely of a fresh issue. Backed by multifold profit surge, will OYO finally cross the D-Street finish line?
OYO’s IPO Gameplan: The hospitality major has filed its papers for a ₹6,650 Cr fresh issue, with no OFS. Eyeing a valuation of up to $8 Bn via the listing, the hospitality giant plans to spend the biggest chunk of the fresh proceeds (₹4,987 Cr) for debt repayment or prepayment. It is also mulling a pre-IPO placement of up to ₹1,330 Cr.
The Profit Story: Unlike its previous two IPO attempts, OYO is entering the public markets fray this time with much stronger numbers. PRISM reported a net profit of ₹748 Cr in 9M FY26, up nearly 3X of its full-year FY25 profit, while operating revenue also rose 11% YoY to ₹6,941 Cr.
The Global Shift: PRISM is steadily repositioning itself as a global hospitality platform rather than a pure India story. The company’s network now spans more than 24,000 hotels and 1.25 Lakh homes, while Europe and the US have become major growth engines. Overall, overseas operations contributed more than 83% of its top line in 9M FY26, while the home turf accounted for the remaining.
The Legal Cloud: But the UDRHP also lays out the heavy legal troubles facing PRISM. The Zostel dispute remains unresolved, and any adverse outcome could force PRISM to transfer up to 7% of its shareholding. There are also risks tied to human trafficking lawsuits in the US, a tax dispute involving shareholder SoftBank and a looming antitrust penalty in India.
As public investors deliberate whether the hospitality giant’s profit surge outweighs the legal baggage, here is all about the OYO parent, PRISM, taking another step towards its IPO…
India’s beverage market is expanding, but premium consumers still have limited options beyond coffee and chai. While bubble tea has caught on, the category remains underdeveloped and has very few brands. Bobakat is trying to change this with a quality-first bubble tea experience.
Bubble Tea For Indians: Founded in 2024, Mumbai-based Bobakat is building a D2C beverage chain around bubble tea. Its menu includes specialised tea blends, authentic tapioca pearls, and fruit jellies, designed to make the category more appealing to Indian urban consumers.
A Premium Experience: Bobakat is not competing on novelty alone. The brand is betting on a mix of product quality, a clearly defined target audience and a carefully designed in-store experience. This approach gives the startup a more premium positioning in a market, where many beverage brands struggle to stand out beyond flavour variants and social media buzz.
Built For Scale: The D2C brand claims to have already served more than 10 Lakh customers and posted strong growth. It now plans to open 35 new stores by FY27, followed by 50 stores each in FY28 and FY29, signalling an aggressive retail expansion strategy.
Tapping into India’s bubble tea market, which is projected to become a $219 Mn opportunity by 2033, can Bobakat turn bubble tea into a scalable category?
Info Edge wants a front-row seat to India’s AI revolution. The investor behind Naukri and 99acres has deployed more than ₹1,003 Cr across AI and deeptech startups since 2020. Here is all about it…
Source: Inc42 - Startups
