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.