Amid IPO frenzy, Oyo prepping for public offering: CFO

On Zomato's recent IPO rollout, he said, "These are very positive developments... All these IPOs usher a new era to the Indian consumer internet ecosystem... This is very positive for the entire ecosystem."

When asked about Oyo being put in the non-investment grade category from Fitch and Moody, Gupta said, "Within our peer set and within the contours of the environment that we operate in, B3 and B flat are very good ratings."

He also revealed that Oyo, at present, has an outstanding debt of $660 million.

The Oyo official also opened up on the reason behind the company going for a B term loan.

He said, "It is a very market opening opportunity. We learned a lot from our peers. Grab is a stakeholder in Oyo. They went for this financing. Look, we want to be more and more public market-ready and there is no better way to prepare yourselves than opening up your books to the rating agencies."

Talking about the impact of the COVID-19 pandemic on Oyo's business, Gupta said, "The COVID waves are directly correlated to our business recovery. When we were in the January-February-March of this year in India between wave one and wave two, our business was looking at a very fast recovery, almost 50-60 percent of pre-COVID levels in India. We were actually profitable for those three-four months in India and then came quarter two when we went back into the red because bookings dropped and the revenues dropped. As of the last two weeks, we have seen a surge of business coming back."