Once turned in the middle of financial controversies, Oyo has turned the tide to a decisive corner. The global hospitality tech platform has become India’s most profitable start-up for FY 25, posting a record 623 crore profit. This is a 172% increase from last year’s profit, based on the latest unaudited financial results, a big signal in the business transformation of the company.
During a recent town hall with employees, the CEO, Ritesh Agarwal, announced this news, marking a milestone moment for the Softbank-backed company as it prepares for an IPO( Delayed but still on cards).
20% Rise In Oyo Revenue
Oyo saw a remarkable 20% YoY rise in revenue to Rs 6,463 crore. This growth was driven by a 54% surge in Gross Booking Value (GBV), standing at Rs 16,436 crore for FY 25. Some significant factors that contributed to this growth were:
- Advanced digital targeting strategies to approach high-intent customers by acquiring US-based G6 Hospitality’s Digital Assets
- Countering mismanagement and inefficiencies by adding 700 Company Serviced Hotels in 1 Year
- Expanding globally through their company-serviced townhouse and Sunday Hotels across the US, France, Dubai and other premium locations.
Oyo’s Strong FY 25 Profit
Oyo’s EBITDA touched Rs 1,132 crore, showing a 27% growth from Rs 889 crore in FY 24. This is the tenth consecutive quarter of Oyo’s EBITDA profitability. The latest Q4 FY 25 gave a Rs 1,872 crore revenue, a 41% rise Yoy. In the same period, EBITDA stood at Rs 442 crore, up by 61%, indicating improved cost and efficiency.
Oyo’s Expanding Market Presence
The travel tech company has expanded to 30 new Sunday Hotels in the last year, expanding across India, the UAE, Saudi Arabia, and Southeast Asia. Now, Oyo has a global presence of 22,700 hotels,1.2 Lakh homes and more than 91,000 listings. The number of properties under active management grew from 7 in Q4 FY25 to 256 properties in Q4 FY25.
Oyo IPO Status
Oyo IPO is now delayed even after the third attempt to list on the stock exchange. Bloomberg reported that Softbank, which holds more than 40% of Oyo, advised the company to keep its IPO plans aside until its financial health shows a stronger improvement.
This is the 3rd time Oyo has deferred its IPO. The first one in 2021. The company planned to get listed in 2024, only to drop its IPO papers again in 2024. But with recent profitability indications, the OYO IPO may soon be around the corner.
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