📷 Image Credits: Moneycontrol
OYO, the online hotel aggregator, has reported its first profitable financial year in 2023-24, with a net profit of nearly Rs 100 crore, according to founder Ritesh Agarwal. In a recent post on social media platform X, Agarwal expressed his excitement over the company’s financial health, highlighting eight consecutive quarters of positive EBITDA and a cash balance of approximately Rs 1,000 crore. While these numbers are provisional, Agarwal remains optimistic that the audited financials will closely align with these figures.
The company is currently in talks to raise $80-90 million from family offices at a valuation of $3 billion to $4 billion, a significant drop from its peak valuation of $10 billion in 2019. Additionally, OYO recently withdrew its IPO application for the second time as it focuses on refinancing a $450 million loan repayment and securing additional funds through a fresh share issue.
Sources close to the company revealed that OYO achieved an adjusted EBITDA of Rs 888 crore in FY24, a substantial increase from Rs 274 crore in FY23. The company’s expansion efforts in FY24 included the addition of 5,000 hotels and 6,000 homes globally. The gross booking value (GBV) per storefront per month for hotels reached Rs 3.32 lakh, with improved gross margins and operating costs.
Agarwal emphasized OYO’s growth potential not only in India but also in key international markets such as the Scandinavian region, Southeast Asia, the US, and the UK. He highlighted Fitch Ratings’ recognition of OYO’s improved performance, leading to an upgrade in the credit rating of OYO’s parent company, Oravel Stays. Looking ahead to FY25, Agarwal anticipates even more exciting developments for the company.
In conclusion, OYO’s maiden profitable fiscal year signals a significant milestone for the company, reflecting its commitment to financial sustainability and growth. With a strong financial foundation and strategic expansion plans, OYO is poised for continued success in the global hospitality industry.
