Oyo narrows losses in FY23 at Rs 1,287 crore, revenue stands at Rs 5,464 crore

OYO enters premium resorts, hotels category, launches Palette brand

Hospitality and travel tech startup Oyo has reduced its losses in the financial year 2023 to Rs 1,287 crore, compared to a loss of Rs 1,942 crore in FY22.

The company reported revenues of Rs 5,464 crore in FY23, as opposed to Rs 4,781 crore a year ago, according to consolidated financial statements sourced from PrivateCircle research, a private market intelligence platform.

The company's domestic revenue services amounted to Rs 1,383 crore, up from Rs 1,139 crore in FY22. On the other hand, the company reported income from export revenue services at Rs 4,081 crore, higher than the Rs 3,642 crore in FY22.

Earlier this year, founder Ritesh Agarwal, during an employee town hall in March, had stated that the company expects to achieve adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) of nearly Rs 800 crore in FY24. He mentioned, "We are taking measures to maintain a healthy cash runway and continue to operate in a cost-effective manner."

The company, which filed preliminary documents with the Sebi in September 2021 for an Rs 8,430-crore initial public offering (IPO), has refiled its draft red herring prospectus (DRHP) with the SEBI under the recently introduced pre-filing route.

In FY23, the SoftBank-backed firm reduced expenses to Rs 6,799 crore from Rs 6,985 crore in FY22.

A recent Bloomberg report stated that the company is in talks with Apollo Global Management Inc. to refinance a $660 million loan as the firm seeks more time to reduce debt following a delay in its initial public offering.

The lodging-booking company, in a statement, said that due to an increase in profits, they regularly receive inquiries about cheaper financing options. However, the company's board hasn't approved anything, including prepayment of some portion.

The company has also witnessed some departures earlier this year, with India CEO Ankit Gupta resigning along with Oyo's Europe head, Mandar Vaidya, as the firm announced in a statement.