The founder of travel tech platform OYO, Ritesh Agarwal, informed staff members on Wednesday that the company, which is getting ready to launch its first public offering, is probably going to raise equity money from institutional investors at a valuation of USD 3–4 billion, according to sources.The Softbank-backed company, scheduled for an initial public offering (IPO), reported a profit after tax (PAT) of Rs 99.6 crore (USD 12 million) in FY24, marking its first net successful year.
According to reports, the firm reported a profit after tax (PAT) of Rs 100 crore for the quarter ending in March.Furthermore, as per the sources, who cited a presentation given at the town hall, it also revealed an adjusted EBITDA of Rs 888 crore (USD 107 million) for the entire fiscal year, up from Rs 274 crore (USD 33 million) in FY23.
Following the refinancing of its USD 450 million Term Loan B (TLB) at a reduced interest rate, Oravel Stays Ltd, the operator of the travel-tech business OYO, will refile its initial public offering (IPO) paperwork with the Securities and Exchange Board of India (Sebi), according to a report published by PTI last week.
"OYO has also been approached by friendly investors and may do a small equity round at a USD 3-4 billion valuation, or at Rs 38-45 per share to further reduce its debt," Agarwal said the staff at the townhall. OYO added over 6,000 houses and 5,000 hotels worldwide in FY24.
For hotels, the gross booking value (GBV) per window per month was Rs 3.32 lakh (USD 4,000). The gross margins of the travel tech platform increased in FY24, from Rs 2,350 crore (USD 283 million) in FY23 to Rs 2,508 crore (USD 302 million).
According to reports, operating expenses also improved, going from 19% of GBV in FY23 to 14% of GBV in FY24. "This profitability was driven by improving operational performance, stable gross margins, cost efficiencies, and a reduction in interest costs following a part prepayment of USD 195 million in debt through a buyback process in Q3 FY24," Agarwal stated.
"For FY25, we hope to grow our revenues and GBV as well, while continuing the profit growth trajectory," he stated. OYO just completed a USD 195 million (Rs 1,620 crore) debt buyout. Repurchases of thirty percent of its outstanding Term Loan B, which is due in June 2026, were part of the buyback process.
