After preliminary discussions with potential investors, Oyo Hotels & Homes is reportedly targeting a valuation of $9 billion in its forthcoming initial public offering (IPO), reports Economic Times.

The Ritesh Agarwal-led startup is likely to get go-ahead for the IPO this week or next after filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) last year.

The company was earlier expected to go with a $10 billion valuation, which it had already hit back in 2019.

However, the pandemic-hit firm is now contemplating offering a discount of as much as 15 per cent on $10 billion valuation suggested by bankers during early discussions.

Oyo’s financial struggles amidst the Covid-19 pandemic along with Paytm’s disappointing listing in the stock market late last year are among the reasons behind the startup’s measured expectations from their upcoming IPO.

Founded in 2013, the company has planned to raise about Rs 8,340 crore from their listing by selling new shares as well as some secondary shares.

As the pandemic halted the company’s expansion, Oyo revamped its business model and is now focusing on selling its software and support services to hotel operators, homeowners and resorts while simultaneously providing a platform for travellers to book lodging.