SoftBank-backed Oravel's India IPO valuation comes under pressure

People familiar with the matter said SoftBank-backed Oravel Stays Ltd., the parent company of travel platform OYO, has encountered investor resistance over its IPO valuation, making it another Indian startup whose pricing is being questioned. Investors indicated a pre-money valuation of about Rs 250 billion, while the company had originally hoped to reach Rs 400 billion, said the people, who declined to be named. The Press Trust of India reported this week that the company has cut its planned fundraising size from Rs 66.5 billion to about Rs 33.5 billion. Oravel is conducting an investor roadshow and aims to launch the IPO as early as November, the people said. Discussions are ongoing, and details such as valuation, fundraising size and listing timing may still change. An OYO spokesperson did not respond to a request for comment.