Key Points of OYO Revenue Hike Forecasts for FY23:
- OYO estimates revenue of over ₹5,700 crore in FY23, up 19% from FY22.
- Ritesh Agarwal, the Founder & Group CEO of OYO, shared this information during a recent town hall with employees.
- The company aims to achieve adjusted EBITDA of nearly ₹800 crore in the upcoming financial year.
- OYO has experienced sustained growth in India, Indonesia, the US, and the UK, and has optimized its European vacation homes business.
- OYO’s key focus areas in 2023 would be on achieving Profit After Tax (PAT), consistent momentum in EBITDA, cost efficiency, improving contribution margins, and making storefront additions.
- OYO has a current cash balance of ₹2,700 crore, and hopes to consume very little of it for existing operations.
- OYO’s IPO was delayed due to volatile market conditions, making the company prepare to settle for a lower valuation of around USD 7-8 billion instead of the initial target of USD 11 billion.
Details of OYO Revenue Hike for FY23:
OYO, a hospitality and travel-tech company, has announced an estimated revenue of over ₹5,700 crore in FY23, which is a 19% increase from its previous revenue of ₹4,780 crore in FY22. The Founder & Group CEO of OYO, Ritesh Agarwal, shared this information during a recent town hall with employees. Agarwal also mentioned that the company aims to achieve adjusted EBITDA of nearly ₹800 crore in the upcoming financial year.
OYO has experienced sustained growth in India, Indonesia, the US, and the UK, and has optimized its European vacation homes business. This has led to better financials for the company. Agarwal highlighted that OYO’s key focus areas in 2023 would be on achieving Profit After Tax (PAT), consistent momentum in EBITDA, cost efficiency, improving contribution margins, and making storefront additions.
As of now, OYO has a current cash balance of ₹2,700 crore, and Agarwal hopes the company would end up consuming very little of it for existing operations. With an improvement in cash flow, OYO’s reliance on external funds has also decreased gradually over time.
OYO reported an adjusted EBITDA of ₹63 crore in the first half of FY2023, as per its filing with Securities and Exchange Board of India (SEBI) in an update to its Draft Red Herring Prospectus (DRHP). In January, SEBI had asked OYO to refile the draft IPO papers with certain updates. In September 2021, OYO had filed preliminary documents with SEBI for an ₹8,430 crore-IPO. The IPO was delayed due to the volatile market conditions at that time, making the company prepare to settle for a lower valuation of around USD 7-8 billion instead of the initial target of USD 11 billion.
About OYO:
Founded by Ritesh Agarwal in 2012, OYO Rooms, also referred to as OYO Hotels & Homes, is a multinational hospitality chain that leases and franchises hotels, homes, and living spaces. Initially, OYO primarily consisted of budget hotels.
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