Exclusive: Zostel’s petition in Delhi HC adds a legal twist to Oyo’s IPO saga

Oyo Hotels & Homes, which is preparing to file a draft prospectus for a $1-$1.2 billion initial public offering (IPO),has a legal hurdle ahead that is being posed by once rival Zostel (Zo Rooms) over a botched acquisition deal, which is due to come up for a court hearing on Wednesday.

Hospitality startup Zo—which claims that Oyo is in breach of a binding agreement for a buyout deal dating back six years—has now approached the Delhi High Court seeking redressal in a move that could potentially be a spanner in the works for the IPO-bound Oyo.