Online Hotel Aggregator OYO Posts FY24 with a Decent Rs 100 Crore Profit

As per the founder Ritesh Agarwal, online hotel aggregator OYO had its first profitable year in 2023–2024, with a net profit of almost Rs 100 crore. He asserted the company’s strong financial standing in a post on X (formerly Twitter), citing eight straight quarters of positive EBITDA and a cash position of about Rs 1,000 crore. Despite the fact that these are preliminary data, Agarwal predicted that the audited financials will probably be quite close to these amounts.

According to reports, the business is looking to collect as much as $80-90 million from family offices at a valuation of $3 billion to $4 billion, which is 70% less than the $10 billion peak it reached in 2019.

The hotel unicorn publicly withdrew its proposal for an initial public offering (IPO) earlier this month in order to restructure a $450 million loan repayment and obtain extra funds through a new share offering. According to people with direct knowledge of the developments, OYO had adjusted EBITDA of Rs 888 crore ($107 million) in FY24 as opposed to Rs 274 crore ($33 million) in FY23.

“In FY24, the company added about 5,000 hotels and 6,000 homes globally. The gross booking value (GBV) per storefront per month for hotels stood at Rs 3.32 lakh ($4,000). The travel tech platform’s gross margins improved in FY24, reaching Rs 2,508 crore ($302 million), up from Rs 2,350 crore ($283 million) in FY23, and operating costs also improved, decreasing from 19 percent of GBV in FY23 to 14 percent of GBV in FY24,” said a person in the know.

The creator of OYO expressed optimism in his post on X about the company’s growth possibilities not only in India but also in important international regions like Southeast Asia, the US, the UK, and the Scandinavian region.