Revenue of OYO rises to 700% in FY17

oyo turnover 2018

FY17 has been a great year for OYO. The hotel aggregator firm, OYO, has witnessed seven times revenue growth at Rs.125 crore in FY17 compared to Rs.17 crore during 2015-16, thus bringing down its losses by 27 per cent to Rs.363.7 crore in 2016-17 as compared to the previous financial year.

The revenue growth has largely been driven by over 2X growth in room nights and significant improvement in commissions.

The company reported 25X loss (Rs.496 crore) in 2015-16 as compared to the previous fiscal, while its expenses rocketed to Rs.520 crore in that period from about Rs.32 crore in FY2015.

“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 & CEO Ritesh Agarwal said in a press statement.

According to Agarwal, the company sees significant potential through “OYO Home”. It had launched Home Management Service to leverage its existing on-ground operations to deliver a solution to second homeowners. OYO Home focusses on locked and unused homes across top holiday destinations in the country.

The company has secured about $442 million from the likes of Softbank, the China Lodging Group.

OYO recently rose to become a full stack hospitality company after aggregating oyo budget hotels for over three years. It positions itself as pure-play franchise business which allows hotel partners to become OYO-branded hotel. Presently, it claims to operate 8,500 hotels and 70,000 rooms in more than 230 cities in India.