Oyo’s cash flow has been on a positive trajectory in the fourth quarter of the financial year FY 2023.
In fact, the hospitality and travel tech startup Oyo has as many as Rs 90 crore in cash flow surplus, as revealed in a presentation to its employees.
Oyo Records 90 Crores Cash Flow Surplus
In a presentation to staff members, the hospitality and travel technology startup Oyo announced that in the fourth quarter of the fiscal year (FY) 2023, the company had a Rs 90 crore cash flow surplus at the end of Q4FY23.
With this, the firm headed for an initial public offering (IPO) was now on track to complete FY23 with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly Rs 245 crore, making it Oyo’s first profitable year since its launch circa 2013.
The company’s adjusted EBITDA saw a significant rise due to several factors, including a notable improvement in operational efficiencies that led to an adjusted EBITDA of Rs 63 crore in H1FY23.
In H2FY23, the company is expected to triple its adjusted EBITDA to around Rs 185 crore, a significant jump from the negative adjusted EBITDA of Rs 190 crore reported in H2FY22. This information was disclosed in an addendum filed with the Securities and Exchange Board of India (SEBI).
Oyo’s Revenue Increased by 19% From Rs 4,780 Crore in FY22 to Rs 5,708 Crore
Additionally, Oyo’s revenue increased by 19% from Rs 4,780 crore in FY22 to Rs 5,708 crore in FY23. Oyo anticipates maintaining this pace of growth and expects its adjusted EBITDA to increase from Rs 245 crore in FY23 to approximately Rs 800 crore in FY24, according to the company’s presentation.
As per sources close to the development, the reason for the increase in revenue may be due to a surge in bookings across all significant regions, especially in the Europe homes business, which is experiencing an unprecedented level of advance bookings.
The company has refiled its draft red herring prospectus (DRHP) under the pre-filing route with the Securities and Exchange Board of India (SEBI) and plans to raise over Rs 8,400 crore through a combination of primary and secondary shares. According to the presentation, the company has cash reserves of around Rs 2,700 crore.
Oyo intends to launch an IPO with a fresh issue of equity shares up to Rs 7,000 crore and an offer for sale (OFS) of Rs 1,430 crore. Reports suggest that Oyo aims to enter the public markets at a valuation significantly lower than the $10 billion initially sought.
