Oyo's Revenue Rises 18% To Rs 4,905 Crore In FY22, Files Documents With Sebi For IPO In Early 2023

Oyo was still far behind its pre-Covid annual operating revenue of Rs 13,413 crore in FY20

Oyo is internally working toward a January IPO as executives are encouraged by a pick-up in demand.

Source : Getty

Online hotel aggregation Oyo’s operating revenue jumped 18 per cent to Rs 4,905 crore in FY22 from the previous year, while its net loss narrowed 45 per cent to Rs 1,851 crore, according to news reports.

The Softbank-backed firm was still far behind its pre-Covid annual operating revenue of Rs 13,413 crore in FY20. The company had clocked a net loss of Rs 10,419 crore in the pre-pandemic years.

Oyo has claimed Ebitda (earnings before interest tax depreciation and amortisation) -level profitability of Rs 10.6 crore for the June quarter. While the company excluded finance costs (like interest payments) and share-based payment costs for its Ebitda computation, it included other income (which generally means returns from financial investments like bank deposits and mutual funds).

Meanwhile, the firm is reviving plans for a stock market debut after cost cuts and a recovery in travel helped it reduce losses.

The hotel-booking firm filed fresh financial documents on Monday and is now targeting an initial public offering in early 2023 provided that the stock market continues to hold up and economic conditions improve, quoting sources Bloomberg reported.

Oyo, formally known as Oravel Stays Ltd., is internally working toward a January IPO as executives are encouraged by a pick-up in demand, the sources said.

Oyo had filed preliminary IPO documents in 2021, only to shelve the listing plan earlier this year after the prolonged pandemic hurt its growth and forced the company to cut thousands of jobs. It disclosed its latest financials in an IPO filing addendum on Monday, with the numbers showing narrower losses and a rebound in sales for the year through March 2022 and the following three months.

The start-up is now focusing on four main regions: India, Malaysia, Indonesia, and Europe, where it manages vacation homes. It has cut down operations in markets it previously considered crucial, such as the US and China, where its employees now measure in the single digits, the sources added.