OYO, the IPO-bound hospitality unicorn, achieved its second consecutive profitable quarter in Q3 of the financial year 2023-24 (FY24), doubling its profit after tax to INR 30 Cr, Founder and CEO Ritesh Agarwal said.
At a town hall meeting on Friday, Agarwal announced that the startup’s first profitable quarter was in September, with a net profit after tax of over INR 16 crore.
“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience, and favourable market conditions conducive to sustained growth,” Agarwal said.
According to sources, Agarwal stated that OYO experienced a nearly 10% year-on-year revenue growth in the third quarter of FY24. Additionally, the company managed to reduce its operating costs by 15% compared to the same quarter last year through optimization efforts.
He mentioned that the platform’s hotel count surged by almost 27%, reaching 17,000 over the past year.
It’s worth noting that OYO witnessed a 34% decrease in its net loss, dropping to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in FY22. Additionally, operating revenue increased by 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in the preceding fiscal year.
Agarwal announced during the town hall that the startup’s adjusted EBITDA reached INR 275 Cr in FY23 and is projected to increase to approximately INR 1,000 Cr in the current fiscal year.
Recently, OYO also repaid INR 1,620 Cr of its outstanding Term Loan B (TLB), accounting for about 30% of its TLB, which has a term until June 2026.
Continue Exploring: OYO initiates INR 1,620 Cr debt repurchase, aims to proactively settle one-third of Term Loan B
Last month, it was reported that the startup was in talks with Malaysian sovereign wealth fund Khazanah Nasional Berhad to raise close to $400 Mn in a fresh funding round at a valuation of $6 Bn.
Continue Exploring: Oyo Hotels in advanced talks with Khazanah Nasional Berhad for $400 Million funding boost
Established in 2012 by Ritesh Agarwal, OYO provides a range of accommodations including holiday homes, casino hotels, coworking spaces, budget hotels, and corporate stays, among others.
Last year, the SoftBank-backed startup filed its draft red herring document (DRHP) for its initial public offering (IPO) via a confidential route. Additionally, it reduced the IPO size to $400-$600 Mn from the initial plan of raising INR 8,430 Cr ($1.2 Bn) when it first filed the DRHP in 2021.