According to its founder, Ritesh Agarwal, the hotel booking platform OYO achieved its first-ever profit in FY24, making about Rs 100 crore in net profit. He shared on X (formerly Twitter) that the company is doing well financially, with eight quarters in a row of positive EBITDA (earnings before interest, taxes, depreciation, and amortization) and around Rs 1,000 crore in cash.
Even though these numbers are not final yet, Agarwal mentioned that the audited financials will probably be similar to these figures.
OYO Seeks Funds, Withdraws IPO Application
OYO, the hotel company, is trying to get $80-90 million from family offices. They want to do this at a valuation of $3 billion to $4 billion, which is 70 percent less than the highest value they reached in 2019, which was $10 billion.
Recently, they pulled back their application for an IPO for the second time. They did this because they need to pay back a loan of $450 million and want to raise more money by selling new shares.
OYO’s Growth and Financials
According to insiders, OYO made an adjusted profit of Rs 888 crore ($107 million) in the financial year 2023-24, compared to Rs 274 crore ($33 million) in the previous year. The company added around 5,000 hotels and 6,000 homes worldwide during the same period. Each hotel, on average, brought in about Rs 3.32 lakh ($4,000) per month in bookings.
The platform’s overall earnings before expenses improved to Rs 2,508 crore ($302 million) from Rs 2,350 crore ($283 million) in the previous year. Also, the operating costs decreased from 19 percent to 14 percent of the total bookings.
In a post on X, OYO founder Ritesh Agarwal expressed confidence in the company’s growth in India and important international markets like Scandinavia, Southeast Asia, the US, and the UK.
OYO’s Strong Performance Recognized by Fitch Ratings
Recently, Fitch Ratings upgraded the credit rating of OYO’s parent company, Oravel Stays, due to OYO’s improved performance and solid cash flow. The founder, Ritesh Agarwal, highlighted this recognition and pointed to emerging travel trends, projecting a promising year ahead.
In the financial year 2023-24, OYO expanded its portfolio by adding 5,000 hotels and 6,000 homes globally. The company reported a profit after tax (PAT) of Rs 99.6 crore and an adjusted profit before expenses (EBITDA) of Rs 888 crore for the fiscal year.
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