Oyo Rooms, an Indian unicorn on the verge of going public, is hoping to raise $9 billion from the market. According to a Bloomberg report, the valuation was determined following early discussions with potential investors.

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In September, the company submitted its preliminary filings with the Securities and Exchange Board of India (SEBI) for the initial public offering (IPO). According to media reports at the time, the start-up, helmed by 28-year-old Ritesh Agarwal, was aiming for a valuation of less than $12 billion. Later, it was revealed that the company’s valuation would be less than $10 billion.

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According to two people familiar with the situation who were mentioned in the Bloomberg report, there are other reasons for the company’s low expectations, including Oyo’s financial difficulties and the fall in US tech markets.

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According to Agarwal, the COVID-19 outbreak impacted the company like a “cyclone.”  It abruptly halted the start up’s expansion and pushed Agarwal to lay off thousands of employees.

The company reported a revenue loss of Rs 3,930 crore in the fiscal year ended March 2021, down from Rs 12,800 crore the previous year, according to documents filed with SEBI.

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The IPO of SoftBank-backed Oyo Rooms will be one of the largest since Paytm went public. Oyo’s offering is likely to include primary shares (those offered by the company) as well as a lesser percentage of secondary equities.

According to reports, SoftBank would sell a portion of its stake in the Gurgaon-based company. Currently, Masayoshi Son-led SoftBank, an early and passionate supporter of Oyo, owns around 47% of the company.

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Sequoia Capital, Lightspeed Ventures, and Greenoaks Capital Management are among the other prominent investors in the company, which was launched in 2013. They have no intention of selling their holdings in the projected IPO.