OYO Parent PRISM Nets INR 50 Cr For Premium Hotels Expansion Ahead Of IPO

En route to an initial public offering (IPO), hospitality major OYO’s parent PRISM has raised INR 50 Cr ($5.6 Mn) for its premium hotels subsidiary Sunday PropTech. The round was led by a consortium of investors including InCred and Analah Capital.

According to PRISM, the fresh funding will help Sunday PropTech expand its portfolio of high-end hotels with “minimal upfront capital investment.” The subsidiary plans to launch 40 new four- and five-star hotels in FY26 across metros, non-metros, wildlife destinations, and pilgrimage centres.

Led by OYO’s VP Finance Saurav Agarwal and Group CFO Rakesh Kumar, Sunday PropTech manages high-performing hotel and office assets through long-term strategies, focusing on premium, high-yielding properties in key urban and leisure markets. Its hotels operate under PRISM’s brands including Sunday Hotels, Palette Hotels, and Townhouse.

OYO has been bullish on expanding its company-serviced hotels such as Townhouse and Sunday to boost revenue ahead of its IPO filing. In June, the company said it aimed to expand this portfolio to 1,800 properties by year-end, up from over 1,300 hotels currently in India.

As part of its premium push, OYO also recently launched a new brand, CheckIn Hotels, which houses Sunday Hotels, Townhouse, DanCenter, and Palette. OYO’s economy brands remain available on its app.

On the financial front, OYO posted a net profit of INR 244.8 Cr in FY25, up 7% from INR 229.6 Cr in FY24, its maiden profitable year. However, excluding a deferred tax gain of INR 765.6 Cr, OYO would have slipped back into the red. The company claims to have started FY26 strong, with CEO Ritesh Agarwal projecting a PAT of over INR 200 Cr in Q1 FY26 and a 47% YoY revenue jump to INR 2,019 Cr for the quarter.

Earlier this month, OYO also adopted a new corporate identity, PRISM Life, as part of its expansion into new categories.

All these moves come as the company gears up for its third attempt at a public listing. PRISM is expected to file its draft red herring prospectus (DRHP) with SEBI by November 2025. Still, even with improving profitability, investor caution lingers over its proposed valuation. OYO’s last private valuation peaked at $10–12 Bn but was later marked down.

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