IPO-bound OYO records first-ever annual profit in FY24
OYO, a leading travel tech firm, has announced its first-ever annual profit after tax (PAT) of ₹229 crore for the financial year 2024 (FY24). This significant milestone comes on the heels of eight successive quarters of positive adjusted EBITDA. The company's adjusted EBITDA witnessed a substantial growth of 215% to ₹877 crore in FY24, up from ₹277 crore in the previous fiscal year.
OYO's earnings per share and revenue performance
For FY24, OYO's earnings per share were approximately ₹0.36, marking a significant turnaround from a loss per share of ₹1.93 in the previous year. The company's consolidated revenue remained steady at ₹5,388 crore, slightly lower than the ₹5,463 crore reported in FY23. OYO successfully reduced its total costs by about 13% to ₹4,500 crore in FY24. This reduction was due to a leaner cost structure achieved by cutting general and administrative expenses, and optimizing marketing spends while maintaining top-line growth.
OYO expands European presence with French acquisition
In addition to its financial achievements, OYO has revealed plans to increase its footprint in Europe through the acquisition of a French vacation rental company. The acquisition involves acquiring K&J Consulting, which operates the Paris-based premium rental service Checkmyguest Group. This deal also includes Studio Prestige, a luxury apartment rental service in Paris, and Helpmyguest, a property design and renovation firm.
OYO's inventory and funding updates
OYO's inventory saw a significant increase from 12,938 properties at the end of FY23 to 18,103 at the end of FY24. This expansion coincides with founder Ritesh Agarwal investing ₹830 crore in the company through his wholly owned entity, Patient Capital. His investment brings the total funding for the latest Series G round to ₹1,457 crore.
OYO's valuation and IPO plans
Despite the recent funding, OYO's valuation has seen a decrease from its peak of $10 billion in 2019 to $2.4 billion. This comes after OYO decided to withdraw its draft red herring prospectus for an initial public offering (IPO) for the second time earlier this year. The start-up had initially filed for an IPO in 2021, aiming to raise about $1.2 billion at a valuation of $12 billion at that time.
