Oyo Generated Rs 13 Crore Revenue/Day Last Year; But Lost Rs 5 Crore Every Day!
OYO has revealed that the revenue of the company has gone up by 18 percent in the financial year 2022 as compared to last year’s numbers.
OYO Revenue Rises By 18% In FY22
We recently reported that OYO shelved its plans to launch its IPO in 2022, owing to a fear of a dent in its valuation after the market downturn.
In an IPO filing to the market regulator, the Softbank-backed company revealed that its revenue went up to Rs 4,905 crore in FY22 as compared to the previous year. Additionally, the net loss was reportedly reduced by 45% to Rs. 1851 crores.
In FY20, OYO was still a long way behind its pre-Covid annual revenue of Rs 13,413 crore. Prior to the coronavirus pandemic, it had a net loss of Rs 10,419 crore.
The company had filed preliminary IPO documents last year and is now after regulatory permission for introducing an update to its draft prospectus. This will be with fresh financial information after the end of the September quarter.
OYO Closed Debt Financing Round of $660
OYO had decided to raise capital through its IPO last year, after it closed a debt financing round of $660 million from institutional investors, in order to do away with some existing debts and push its product tech and operations.
Also, the Ritesh Agarwal-owned hospitality startup will be discussing a discount of 15% on the $10 billion suggested in early discussions by the bankers, which an OYO representative declined to comment on.
OYO plans to raise a total of about Rs 8,430 billion or $1.1 billion through its listing, via the sale of new shares and some secondary shares, or those held by existing investors, added the Bloomberg report.
As per information, the IPO will majorly comprise of primary shares, or those sold by the company, along with a smaller portion of secondary stock.
However, SoftBank which holds 47% of equity in the hospitality major will sell a small of its shares in the company, while OYO’s founder Ritesh Agarwal, who holds 33% stake in the company will not dilute his share.