NEW DELHI: Hospitality startup Oyo (Oravel Stays Pvt. Ltd) reported more than three-fold jump in revenues at ₹327 crore for the year ended March 2018 as against ₹107 crore in FY17 for it's India operations.
The Gurugram-based company's revenue is expected to grow at the same momentum to hit ₹1,481 crore for FY 2018-19, according to a blog note by Abhishek Gupta, chief financial officer at Oyo.
The SoftBank-backed company posted a marginal reduction in losses by 3% to ₹312 crore. The company's total expenses for the fiscal were ₹638 crore compared to ₹430 crore in previous financial year.
"Margin expansion and high degree of operating leverage in the business model has resulted in losses...coming down," Gupta added in the note. "The robust business model generates double-digit positive contribution to the margins."
The startup saw stayed nights (that depicts occupancy rates) at its properties grew more than five-fold year-on-year from 75 million in 2017 to 99 million in December 2018, according to the note.
Oyo Hotels and Homes had an annualised revenue run rate of $1.2 billion as of December last year in the Indian market.
The company has over 1.7 lakh fully controlled and franchised keys as of last year end. Oyo has beefed up its leadership team after the appointment of former IndiGo president Aditya Ghosh as its chief executive officer for India and South Asia.
“Oyo continues to invest in technology and to build long-term capabilities while getting on board the top talent in the country," Gupta added.
Oyo has been on an expansion spree for the last 12-18 momths. It entered multiple international markets including Phillipenes and Indonesia recently. China and India account for Oyo's largest markets, according to the company.
Oyo, which has a $1 billion funding commitment from Japan's SoftBank Vision Fund and other investors, is valued at a little less than $5 billion.