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Oyo’s revenue surged in FY19, but loss widened, too

Budget-lodging startup Oyo reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and pledged to cut down on its spending as the India-headquartered firm grows cautious about its aggressive expansion.
The six-year-old startup’s growing revenue, up from $211 million in financial year ending March 31, 2018 (FY18), is in line with the company’s ambitions to be in a clear path to profitability this year, said Abhishek Gupta, Global CFO of OYO Hotels & Homes, in a statement.
But the startup’s loss has widened, too. Its consolidated loss at $335 million in FY19 rose over sixfold from $52 million in FY18. In India, where Oyo clocked $604 million in revenue in FY19 (up 2.9X since FY18), it was able to reduce its loss to 14% (from 24%) of revenue in FY19 to $83 million.
Oyo’s revenue surged in FY19, but loss widened, too

The startup, which today operates more than 43,000 hotels with over a million rooms in 800 cities in 80 nations, said its expansion to China and other international markets contributed to the loss. Oyo entered China in 2018, and it has already become its second largest market.
“These markets constituted 36.5% of the global revenues. While consistently improving operating economics in mature markets like India where it’s already seeing an improvement in gross margins, the company is determined to bring in the same fiscal discipline in emerging markets in the coming financial year,” the startup said in a statement.
The startup said it is working on improving its gross margin. In India, its gross margin increased to 14.7% from 10.6% as of FY18.
Oyo’s revenue surged in FY19, but loss widened, too
Oyo’s growth in international markets
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