OYO reports its first annual net profit of ₹100 crore, with Ritesh Agarwal optimistic about future growth.

OYO, the travel tech unicorn, revealed its first profitable financial year for 2023–24, with a net profit of approximately ₹100 crore. Founder and CEO Ritesh Agarwal announced the news on social media platform X (previously Twitter), expressing confidence in the company’s future growth possibilities in both domestic and foreign markets.

“While a delighted customer or a hotel partner brings the biggest smile on my face, our first-cut financials of FY24 have me humbled as well,” Agarwal stated. “We had our first net profitable financial year of approximately ₹100 crore. We achieved our eighth straight quarter of positive EBITDA and have a cash balance of around ₹1,000 crore.

OYO’s stronger financial success has not gone unnoticed. Global credit rating agency Fitch recently upgraded OYO’s parent business, Oravel Stays, from ‘B-‘ to ‘B’ with a stable outlook, highlighting the company’s improved financial profile and strong cash flows. Fitch’s upgrade was prompted by OYO’s improving EBITDA, reducing debt, ample liquidity, and the rebound in the travel and tourism industry across key markets.

In FY24, OYO added roughly 5,000 hotels and 6,000 houses globally, demonstrating its rapid expansion. The company recorded an adjusted EBITDA of ₹888 crore (USD 107 million), up significantly from ₹274 crore (USD 33 million) in FY23. Hotel storefronts had a monthly GBV of ₹3.32 lakh (about $4,000), while gross margins increased to ₹2,508 crore (approximately $302 million).

Agarwal credited the company’s success to consistent revenue growth and increased user confidence. He identified developing travel trends in India, including premiumization, spiritual travel, business travel and conferences, and destination weddings, as important development drivers. He also stressed OYO’s potential in global markets such as the Nordics, Southeast Asia, the United States, and the United Kingdom.

This financial achievement comes as OYO prepares to withdraw and refile its draft red herring prospectus (DRHP) for its initial public offering (IPO) following the refinancing of a $450 million loan. The company is also looking to raise $80-90 million from family offices at a $2.3 billion value, down from its peak of $10 billion in 2019.

Agarwal founded OYO in 2012, and it offers a variety of accommodations such as vacation houses, casino hotels, coworking spaces, budget hotels, and corporate stays. To date, significant investors such as Microsoft, Red Lions Capital, JP Morgan Chase, and Qatar Insurance Company have contributed roughly $3.5 billion to the company’s capital.

Looking ahead, Agarwal highlighted his excitement for the upcoming year, saying, “FY25 will clearly be even more exciting.” With its first profitable year under its belt, OYO is well positioned for future growth and expansion in both existing and new markets.