Last updated: January 27, 2023, 6:15 PM IST
Hospitality and travel technology company OYO estimates its revenue in 2022-23 at USD 751 million, at which point it expects to post its first operating profit in a full year, company founder and CEO Ritesh Agarwal has told his employees. Speaking at an employee town hall held this week, Agarwal reportedly shared how the company has been able to gradually strengthen its financial position after overcoming the challenges of the pandemic.
The company expects revenue to reach USD 751 million in FY23, up 19 percent from USD 629 million in FY22, he told employees through a presentation at city hall. In the first half of the fiscal year, OYO posted adjusted EBITDA of USD 8.3 million. It posted an adjusted EBITDA loss of $37 million in the same FY22 period. For the second half of the fiscal year, continued revenue momentum combined with margin expansion and healthy operating leverage is expected to result in an adjusted EBITDA of USD 24 million, he added.
Due to the improved financial situation, Agarwal said OYO is progressing towards its “first full fiscal year of EBITDA profitability”.
When contacted for comments, the OYO spokesperson declined to comment.
Agarwal had recently tweeted that OYO witnessed record bookings of over 4.5 lakh on New Year’s Eve, the highest bookings per hotel per day for India in the past five years. He told the town hall that the company’s hotel business has witnessed strong growth in monthly revenue per hotel, otherwise known as Gross Booking Value (GBV).
Last week, Oravel Stays Ltd, which operates travel technology company and brand OYO, had announced that it will resubmit its draft public listing applications by the middle of next month. Earlier this month, capital markets regulator Sebi had asked the company to resubmit the draft IPO papers with certain updates.
In September 2021, OYO had filed preliminary documents with the Securities and Exchange Board of India (Sebi) for an IPO of Rs 8,430 crore.
The launch of the IPO was delayed due to volatile market conditions at the time, which made the company willing to settle for a lower valuation of around USD 7-8 billion instead of the USD 11 billion it originally targeted.
Read all the latest business news here
(This story has not been edited by News18 staff and was published from a syndicated news agency feed)