IPO-bound hotel chain Oyo aims three-fold profit surge to over Rs 700 crore

Multinational hospitality chain Oyo, expected to go public soon, is aiming for a three-fold rise in its profit after tax (PAT) for the current financial year at over Rs 700 crore, founder Ritesh Agarwal said on Wednesday.

Earlier this year, Oyo reported its first PAT of nearly Rs 229 crore for the financial year 2023-24 (FY24). Oyo achieved a PAT of about Rs 132 crore in Q1 FY25, reversing the Rs 108 crore loss from the same quarter last year, Agarwal said.

The company believes that its growth target will be driven by factors such as growth in key markets (key markets India and South East Asia), FY24 profitability among other things, he said.

 

Oyo is also recording consistent growth in the United States, Agarwal said, adding that the company is opening “a new property every three days”. He said these factors are painting a promising picture for the future quarters.

According to Agarwal, the company has become the largest value hotel platform in Indonesia.

The company has also cracked a deal with Checkmyguest in France to boost its presence in Europe.

In mid-August, the company raised Rs 1,457 crore in its latest funding round. Agarwal also invested Rs 830 crore in the company through his wholly-owned entity, Patient Capital, to signal his confidence in its potential. With this, his stake in the company grows to 32.57 per cent from the existing 29.97 per cent. 

The latest fundraising round has valued Oyo at an impressive $2.4 billion. Since its founding in 2013, the company has grown to cover over 157,000 storefronts across 35 countries.

(With inputs from PTI)