Industry

OYO trims losses by 27% to ₹363.7 crore in 2016-17

File photo: Young Entrepreneur, Ritesh Agarwal, Founder, OYO Rooms, during the launch of Start Up India, at Vigyan Bhawan in New Delhi.

File photo: Young Entrepreneur, Ritesh Agarwal, Founder, OYO Rooms, during the launch of Start Up India, at Vigyan Bhawan in New Delhi.   | Photo Credit: Shanker Chakravarty

OYO recently raised about $260 million in a financing round led by SoftBank, which included participation from all existing investors and the addition of new ones.

Hospitality company OYO said on Thursday that it has narrowed its losses by 27% to ₹363.7 crore in 2016-17, mainly on account of a high degree of operating leverage in the business model.

The company’s losses stood at ₹496.8 crore during FY16, OYO said in a press release. OYO has witnessed seven times revenue growth at ₹125 crore in FY17 compared to ₹17 crore during 2015-16.

The growth in revenue has been fuelled by more than two times growth in room occupancy and significant improvement in commissions, the company said. The company is expected to continue to focus on steady business growth by making strategic investments in building capabilities, partner relations and market expansion.

“2017 has been a watershed year for us. We steered our growth trajectory by upgrading and bringing beautiful living-spaces in the value economy segment through OYO Rooms, while launching our operated brand Townhouse,” said Ritesh Agarwal, OYO founder and CEO .

He added that OYO had identified an untapped opportunity in locked homes management through ‘OYO Home’

“Strong focus on customer experience coupled with strategic investments in proprietary technology has helped us maintain a high net promoter score while empowering our hotel partners. We are confident that in the coming year we will extend our lead over both traditional hotel chains and emulators of our business model,” he added.

OYO recently raised about $260 million in a financing round led by SoftBank, which included participation from all existing investors and the addition of new ones including Hero Enterprises and China Lodging Group.

The company is also backed by investors like the Greenoak Capital, Sequoia India, Lightspeed India.

It is on track to more than double its realised room nights in FY18, Agarwal said, while continuing to improve net margins.

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Printable version | May 28, 2020 1:58:31 AM | https://www.thehindu.com/business/Industry/oyo-trims-losses-by-27-to-3637-crore-in-2016-17/article22293020.ece

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