OYO’s latest financials paint a grim picture

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Editor's note: Early last week, OYO filed its latest financials with the Securities and Exchange Board of India as part of its draft red herring prospectus for an IPO. This is the company’s second update after it filed its application last year, which didn’t immediately get a nod from the market regulator for the company to list on the public markets. At the time, I did a deep dive into OYO’s filing and listed several red flags in the company’s business.  To recap, this is what I had said: OYO’s IPO filing is a desperate, opportunistic attempt. A volte-face by a company that has lost both its purpose and access to capital from venture capital funds who won’t support its shenanigans any longer. The company is nothing short of a dumpster fire asking for permission to tap the public markets, in the hope that somehow this will be the rescue act and lead to its misadventures being forgotten. Maybe it will prove to be one, maybe it won’t. Six months later, I’m afraid there’s not much to cheer about. Allow me to …