OYO trims losses by 27% to Rs363.7 crore in 2016-17
Mumbai: Hospitality company OYO on Wednesday said it has narrowed its losses by 27% to Rs363.7 crore in 2016-17, mainly on account of a high degree of operating leverage in the business model.
The company’s losses were at Rs496.8 crore during FY16, OYO said in a release. OYO has witnessed seven times revenue growth at Rs125 crore in FY17 compared to Rs17 crore during 2015-16.
The revenue growth has been fuelled by more than two times growth in room nights and significant improvement in commissions, the company said. OYO 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,” OYO founder and chief executive officer (CEO) Ritesh Agarwal said.
He said, additionally, OYO has 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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