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OYO announces surplus cash flow of Rs 90 crores in Q4FY23 ahead of IPO
Tourism major OYO has recently announced that it achieved positive cash flows for the first time since its inception in Q4FY23.
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For the unversed, Ritesh Agarwal launched Oravel Stays Ltd., the parent company of OYO, in 2013 based in Gurugram. Even the OYO app was released in 2013 after the business secured Series-A funding. The business opened locations in 100 cities across India in 2015 as part of its expansion.
Malaysia was the company's first international market when it expanded in 2016. After that, the company expanded in 2018 to China, the UK, and Indonesia before doing so in 2019 to the US, the Middle East, and Europe. The app received over 100 million downloads in 2021.
According to an internal presentation, the company has reported Rs 90 crores in surplus cash flows during the quarter.
The company has seen improvement on the revenue front as well. The company logged revenues of Rs 4,780 crores during FY22, which grew 19% to Rs 5,708 crores during FY23.
Post-pandemic growth in tourism, which led to higher bookings, especially around Europe, is stated as the main reason. The company's homes business in Europe has reportedly been seeing 'unprecedented bookings'.
Moreover, the company has also made significant improvements on the EBITDA front. From reporting a negative EBITDA of Rs 190 crores in H2FY22, the company registered a positive EBITDA of Rs 63 crores in H1FY23 and is expected to reach Rs 245 crores in FY23.
According to the company, an improvement in operational efficiencies helped the company turn EBITDA positive. Moreover, the company has projected an EBITDA of Rs 800 crores for FY24.
The company recently pre-filed its DRHP with SEBI, as the company is reportedly planning to float its IPO ahead of Diwali this year.
- Aman Agarwal
