After 10 Years, Oyo Finally Turns Profitable! Reports Rs 90 Crore Cash Flow Surplus Before Crucial IPO Launch
Oyo, the Indian hotel aggregator start-up, has finally turned profitable after a decade of operations. The company reported a cash flow surplus of Rs 90 crore ($12 million) in the financial year 2020-21 before its much-awaited initial public offering (IPO) launch. This news comes as a surprise to many as Oyo was struggling with losses and mounting debt for the past few years. However, the company’s efforts to streamline operations and cut costs seem to have paid off. Oyo’s revenue for FY 2020-21 was Rs 3,619 crore ($487 million), which is a 30% decrease from the previous year. The decrease in revenue can be attributed to the pandemic’s impact on the hospitality industry. The turnaround story of Oyo is nothing short of remarkable. Founded in 2013 by Ritesh Agarwal, a college dropout, Oyo quickly became the go-to budget hotel aggregator for millions of travelers in India. However, in recent years, the company faced severe criticism for its business practices and mounting debt. Agarwal took over as CEO in 2020 and vowed to turn the company around. Oyo‘s success can be attributed to several factors. First, the company’s focus on technology and data analytics helped it to streamline operations and reduce costs. Second, the pandemic forced the company to rethink its business model and pivot towards long-term bookings. Finally, Oyo’s IPO launch provided the company with much-needed financial stability. Oyo’s success has not only put it back on the map but has also brought back investor confidence in the hospitality industry. With the pandemic’s impact on the industry waning, Oyo’s IPO launch is expected to be a game-changer for the company. The IPO is expected to value Oyo at $12-15 billion and will provide it with much-needed funds for expansion. CONCLUSION Oyo’s turnaround story is an inspiration to all entrepreneurs who face obstacles and challenges in their businesses. It is a reminder that with hard work, dedication, and a little bit of luck, anything is possible. Oyo’s success is not only good news for the company but also for the Indian startup ecosystem as a whole. OYO share price as of 26/04/23 is Rs 70. You can connect with bharatinvest to invest in OYO’s Share. Get regular updates on OYO share Price , unlisted shares only on Bharat Invest.
Oyo’s Expansion in Religious Cities: A New Era of Hospitality and Pilgrimage
Oyo, the Indian hospitality company, has announced its plan to open 50 properties in Ayodhya, the city known for its spiritual and cultural significance in Hinduism. The move reflects Oyo’s growing interest in religious tourism and pilgrimage destinations. Oyo’s decision to expand its footprint in Ayodhya comes after the Indian Supreme Court’s ruling in 2019 to settle a long-standing dispute over a religious site in the city. The verdict has led to an increase in the number of tourists visiting Ayodhya, making it a prime location for Oyo’s expansion. The new properties will offer a range of accommodations, including budget hotels, premium resorts, and serviced apartments. Oyo aims to cater to the diverse needs of its customers, from budget travelers to luxury seekers. Oyo has been expanding its presence in religious cities across India, recognizing the potential of the market. The company already operates hotels in Varanasi, Haridwar, and Mathura, among other religious cities. By expanding its portfolio in Ayodhya, Oyo is betting big on the growing demand for spiritual tourism in India. The hospitality industry in India has seen significant growth in recent years, driven by the rise of domestic and international tourism. According to a report by the Indian Brand Equity Foundation, the country’s tourism industry is expected to reach $48 billion by 2025. The increasing interest in religious tourism has also been a key factor in driving growth in the hospitality sector. India is home to many religious sites, attracting millions of devotees every year. With the rise in disposable income and improved transportation facilities, more people are now opting for spiritual vacations. Oyo’s expansion in Ayodhya and other religious cities is likely to boost the local economy and create job opportunities. It will also provide travelers with better accommodation options, making their pilgrimage experience more comfortable and enjoyable. Conclusion Oyo‘s move to expand its presence in Ayodhya and other religious cities is a step towards creating a new era of hospitality and pilgrimage. With the increasing demand for spiritual tourism in India, Oyo is well-positioned to capitalize on this growing market. The expansion is likely to benefit both travelers and the local economy, paving the way for a brighter future for the hospitality industry in India. OYO share price as of 26/04/23 is Rs 70. You can connect with bharatinvest to invest in OYO’s Share. Get regular updates on OYO share Price , unlisted shares only on Bharat Invest.