HBI Staff | Hyderabad 
According to INC42 ,IPO-bound hospitality unicorn OYO achieved profitability in the financial year 2023-24 (FY24), posting a net profit of INR 229.5 Cr, a significant turnaround from the previous year’s net loss of INR 1,286.5 Cr. The company’s ability to control costs, particularly by trimming employee expenses, played a key role in its financial improvement. OYO had previously announced its profitability last month.
Despite the positive bottom line, OYO’s operating revenue remained largely flat, totaling INR 5,388.7 Cr in FY24, a slight 1.3% decline from INR 5,463.9 Cr in the previous fiscal year, according to filings with the Ministry of Corporate Affairs. Including other income, total revenue for the year declined by 1% to INR 5,541.5 Cr from INR 5,601.7 Cr in FY23.
OYO’s hotel count grew significantly during FY24, with 18,103 hotels on its platform by year-end, up from 12,938 a year earlier. However, the company noted that new hotels take time to reach their full potential, which contributed to the stagnant revenue figures.
Founded in 2012 by Ritesh Agarwal, OYO offers a suite of over 40 integrated products and solutions to more than 157,000 hotels and home storefronts in 35 countries, including India, Europe, and Southeast Asia.
The startup’s total expenditure fell 16% in FY24 to INR 5,725.7 Cr from INR 6,799.6 Cr in FY23. This reduction was driven primarily by a significant drop in employee benefit expenses, which fell 52% to INR 744.3 Cr from INR 1,548.8 Cr in the previous year. Share-based employee expenses also saw a sharp decline, dropping 71.3% to INR 180.6 Cr in FY24 from INR 630.3 Cr in FY23.
OYO’s lease costs, which represented 46% of overall expenses, dropped 8% to INR 2,629.5 Cr from INR 2,843.3 Cr in FY23. However, the company’s finance costs rose by 24%, reaching INR 843.8 Cr in FY24 compared to INR 681.5 Cr the previous year.
Looking ahead, OYO founder and CEO Ritesh Agarwal aims to triple the company’s profit after tax (PAT) to INR 700 Cr in FY25. Recently, OYO raised INR 1,457 Cr (around $175 Mn) in a funding round led by Agarwal’s Singapore-based entity, Patient Capital, alongside J&A Partners and ASK Financial Holdings. This latest funding round saw OYO’s valuation drop to $2.37 Bn from its 2019 peak of $10 Bn.
Despite preparations for an initial public offering (IPO), OYO’s listing has been delayed multiple times. Sources suggest the company is waiting for terms on the refinancing of a $660 Mn Term Loan B, taken by Agarwal in 2019 to buy back shares from investors, before moving forward with the IPO.
