OYO hits profitability for first time in 12 year existence

Unicorn OYO has posted its first ever annual profit for the financial year 2023-2024.

The hospitality start-up which has disrupted home-stay, vacation rentals and the travel industry posted a profit in the accounting period of 100 Cr as announced by its founder and major shareholder Ritesh Agarwal on a post on X.

This past quarter was their eighth consecutive quarter of positive EBITDA and the company has a cash balance of around 1000 Cr.

Global credit rating agency Fitch has upgraded the rating of OYO on the back of strong cash flows and positive operating results.

OYOs revenue for FY24 was around 5600 Cr (almost 700 million USD) and the firm is eyeing growth avenues in the Nordic countries, UK and South East Asia.

The results are a huge boost to the IPO bound firm, as last year results were a net loss of around 1287 Cr. Earlier this month OYO had withdrawn its prospectus filed with SEBI and might be instead looking to raise another round of venture capital or private equity at a valuation of around $2.3 billion said sources familiar with the matter. This would be 74% reduction on the peak valuation that OYO achieved – around $9 billion, in 2021.

OYO was founded in 2012 and has rapidly grown into a household brand name with over 1 million rooms in 80 countries across the globe.