IPO-bound OYO Likely To Raise Fresh Funds From Institutional Investors
OYO's gross margins improved from USD 283 million to USD 302 million, and operating costs decreased from 19 per cent to 14 per cent of gross booking value
OYO, is getting ready to launch its first public issue. It is expected to raise funds from institutional investors at a valuation of USD 3-4 billion. The founder, Ritesh Agarwal, informed employees that the company made a profit of USD 12 million in its first profitable year and reported a profit of USD 13 million in the most recent quarter.
OYO's operator, Oravel Stays, will resubmit its IPO documents to the Sebi after lowering its interest rate on a USD 450 million loan. Agarwal also mentioned the possibility of doing a small equity round at a USD 3-4 billion valuation to reduce debt. In the last fiscal year, OYO added 5,000 hotels and 6,000 homes worldwide.
The company's gross booking value per storefront per month for hotels was USD 4,000. OYO's gross margins improved from USD 283 million to USD 302 million, and operating costs decreased from 19 per cent to 14 per cent of gross booking value. Agarwal expects revenue and gross booking value to grow in the next fiscal year while maintaining profit growth. OYO recently repurchased 30 per cent of its USD 450 million loan.
