Oyo-Zostel dispute ends: Supreme Court clears way for Oyo's IPO
The long-running legal fight between Oyo and Zostel is finally over.
On Wednesday, the Supreme Court dismissed Zostel's last-ditch plea after pointing out they used the wrong legal route.
This means an earlier High Court order—canceling a 2021 arbitration win for Zostel—still stands, and Oyo can move on with its business plans.
What was the Oyo-Zostel deal?
Back in 2015, Oyo tried to buy Zostel's hotel business (remember Zo Rooms?).
They signed a mostly non-binding deal that talked about giving up to 7% equity to Zostel's investors, but never finalized it.
Years of arbitration followed because things were left hanging.
How did the legal battle play out?
A tribunal once told Oyo to honor the deal, but the Delhi High Court later said you can't enforce a contract if key terms were never agreed on—and letting it go through would be unenforceable due to the absence of agreed definitive agreements.
With the Supreme Court siding with Oyo, this closes one of India's longest startup disputes and clears the way for Oyo's IPO dreams.