MUMBAI: Oyo Hotels & Homes has recorded its first profitable year in FY24, posting net profits of nearly Rs 100 crore, founder Ritesh Agarwal said on Thursday. “This (January-March quarter) was our eighth consecutive quarter of a positive EBITDA (earnings before interest, taxes, depreciation and amortisation) and we also have a cash balance of about Rs 1,000 crore,” Agarwal said in a post on social media platform X, adding that the numbers are provisional.EBITDA is a metric of operational profitability.
Oyo is among a batch of late-stage startups which have been working towards reducing cash burn, building in operational efficiencies and achieving profitability. A global tech downturn and reset in startup valuations nudged companies to set their financials in order and chase prudent growth. Investors have been maintaining a cautious stance and only cutting cheques for companies which have been at least able to demonstrate a path to profitability. SoftBank-backed Oyo recently withdrew its draft initial public offering (IPO) papers with market regulator Securities and Exchange Board of India (SEBI) for the second time and is negotiating with investors for a fundraise at lower valuation. The fresh funding could be at a 70% drop from its peak valuation of $10 billion, TOI had reported last week. Company insiders claim that the Gurgaon-based startup plans to refile IPO papers after refinancing its $450 million loan.
Agarwal said that various emerging travel trends bodes well for the hospitality sector. “I see growth ahead not just in India with emerging travel trends such as premiumisation, spiritual travel, business travel and conferences, destination weddings but also in our other key markets of Nordics, South East Asia, US and UK,” Agarwal said. In FY24, Oyo added about 5,000 hotels and 6,000 homes globally.