OYO Predicts Revenue of Over Rs 5,700 Crore in FY23
- ByStartupStory | March 28, 2023
According to Founder & Group CEO Ritesh Agarwal, hospitality and travel-tech company OYO anticipates a 19% increase in revenue in FY23, reaching over Rs 5,700 crore compared to the Rs 4,780 crore recorded in FY22. During a town hall meeting on Monday, Agarwal informed employees that OYO’s objective is to achieve almost Rs 800 crore in adjusted EBITDA in the upcoming fiscal year.
During a company meeting, Founder & Group CEO Ritesh Agarwal stated that OYO’s financials have improved due to sustained growth in India, Indonesia, the US, and the UK, as well as optimization and synergies in its European vacation homes business. Agarwal also presented that OYO predicts a 19% rise in revenue for FY2023, surpassing Rs 5,700 crore compared to the Rs 4,780 crore obtained in FY2022.
Founder & Group CEO Ritesh Agarwal highlighted OYO’s main priorities for the calendar year 2023, which include focusing on achieving Profit After Tax (PAT) while maintaining consistent momentum in EBITDA. Additionally, OYO aims to reach a positive cash flow in FY24, improve cost efficiency, enhance contribution margins, and expand storefronts. Agarwal clarified that EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization.
According to Founder & Group CEO Ritesh Agarwal, OYO is expected to experience a 2% increase in storefronts, closing FY23 with over 1.72 lakh compared to 1.69 lakh in FY22. Although an OYO spokesperson declined to comment when contacted. Agarwal disclosed that the company currently has a cash balance of Rs 2,700 crore and hopes to use very little of it for existing operations. He also mentioned that OYO’s reliance on external funding has gradually decreased over time with an improvement in cash flow. In its filing with the Securities and Exchange Board of India (SEBI) regarding the Draft Red Herring Prospectus (DRHP), the company reported an adjusted EBITDA of Rs 63 crore for the first half of FY2023.
In January, OYO received a request from the Securities and Exchange Board of India (SEBI) to resubmit the draft IPO (Initial Public Offering) documents with specific updates. In September 2021, the company had submitted preliminary paperwork for a Rs 8,430 crore-IPO. However, the IPO was postponed due to unstable market conditions at the time, leading OYO to consider a lower valuation of approximately USD 7-8 billion instead of the initial target of USD 11 billion.
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