OYO’s FY23 Income Rises 14% with 34% Reduction in Losses
- ByStartupStory | October 30, 2023
OYO, the hospitality technology platform backed by SoftBank, has reported substantial growth in its revenue from operations for the fiscal year 2023 (FY23). The company’s revenue reached Rs 5,463.9 crore, reflecting a notable 14.2% increase compared to the Rs 4,781.3 crore earned in the preceding fiscal year. OYO’s total income for FY23 stood at Rs 5,601 crore.
In a financial statement filed by its parent company, Oravel Stays Ltd, OYO showcased impressive progress in reducing its losses. The company’s loss in the financial year ending in March 2023 amounted to Rs 1,286.5 crore, marking a significant 33.7% decline from the Rs 1,941.5 crore loss incurred in FY22.
OYO’s expenses witnessed a marginal decline, totaling Rs 6,799.6 crore in FY23. The majority of these expenses, at Rs 4,288.9 crore, were categorized as unspecified expenses, while employee benefit expenses amounted to Rs 1,548.8 crore, demonstrating a nearly 17% reduction from the Rs 1,861.7 crore spent in FY22.
In an update to its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), OYO reported an adjusted EBITDA of Rs 63 crore in the first half of FY23.
Moreover, OYO’s Founder and CEO, Ritesh Agarwal, recently informed the company’s top management in an email that the hospitality unicorn is on track to achieve its first-ever profit after tax, with a projected profit of over Rs 16 crore in the quarter ending September 30, 2023. This milestone announcement coincides with OYO’s 10th year in operation, making it a significant moment for the company.
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Additionally, Oravel Stays Ltd, OYO’s parent company, reported an adjusted EBITDA of Rs 175 crore in the first quarter of the financial year 2023-24 (Q1 FY24) for the period between April and June. These developments highlight OYO’s ongoing efforts to achieve profitability and financial sustainability.
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