IPO-bound global travel-tech firm OYO reports eight-fold growth in adjusted EBITDA 56 crore in its second quarter financial results. was on Ebitda 7 crore in the first quarter.
The primary driver for EBIDTA growth is a 23% monthly increase in monthly revenue per hotel, also known as gross booking value (GBV) per hotel per month, during the second quarter by approximately 4 million. The company said the monthly increase in GBV per hotel is due to higher average room rents in the form of better stays and travel returns.
In an addendum submitted to SEBI, Ritesh Agarwal-led Oravel Stays Ltd, which operates the company under the Oyo brand, reported lower losses 333 crore during the July to September quarter, down from Rs. 414 crore in the previous quarter.
Oyo filed its second addendum to update its draft red herring prospectus (DRHP) with financial performance till the first half of fiscal 2022-23.
The market regulator had allowed Oyo to submit updated financials before examining and finalizing the company’s IPO application.
OYO, which pushed ahead with its plans to go public next year, offers booking of hotels, homestays and staycations.
The result came after Oyo’s valuation fell to around $6.5 billion in the private market last month following reports that its investor SoftBank Group Corp slashed Oyo Hotels’ valuation by over 20%.
The Gurugram-based company aims to launch its initial public offering (IPO) in the first quarter of 2023 at a valuation of around $7-8 billion, down about $10 billion from its initial estimates when it first filed draft papers. were filed.
During the second quarter of this financial year, OYO has reduced marketing, administrative and employee costs.
Share-based payment expenses were the largest component of net expense at 18% of revenue, followed by marketing expenses at 14% and general and administrative expenses at 7% of H1 FY23 revenue, the company said.
For H1 FY23, Oyo’s revenue grew 24% year-on-year 2,905 crore while Adjusted EBITDA improved 63 crores profit from the loss of 280 crore in the first half of the last financial year ending March 2022.
Unicorn hospitality chain’s GBV up 68.7% YoY for H1 Sep 2022 3.48 lakh, revived after the pandemic led by Covid-19. Total GBV increased by 33% 5,028 crore in H1 2022-23.
However, gross rentals for the OYO European homes business remained flat, showing a growth of only 4%, impacted by inflation.
Founded in 2013 by the then 20-year-old Agarwal, OYO is a leading new-age technology platform powering the large global hospitality ecosystem.
The firm says it now focuses on four main regions: India, Malaysia, Indonesia and Europe, where it manages holiday homes and has scaled down operations in markets it previously considered important, such as the US and China. was considered.
Apart from SoftBank, other shareholders of Oyo include Singapore’s Grab Holdings Inc, China’s Huazhou Hotel and the family office of Sunil Munjal of India’s Hero Group.