OYO has reported its second successive quarter of profitability in Q3 of the fiscal year 2023-24, with its profit after tax (PAT) soaring to INR 30 Crore, disclosed by founder and CEO Ritesh Agarwal. In a recent town hall on February 9, Agarwal highlighted that the preceding September quarter marked the company’s first profitable period, with a PAT exceeding INR 16 crore.

Ritesh expressed optimism for the future, predicting a steady increase in PAT, propelled by growing customer trust, enhanced service experience, and favourable market dynamics promoting ongoing expansion. He further noted a nearly 10% year-on-year revenue surge in Q3 FY24, alongside a strategic 15% reduction in operational expenses compared to the same quarter last year.

The platform has also seen its hotel network expand by approximately 27% to 17,000 properties over the past year. Notably, OYO reduced its net loss by 34% to INR 1,286.5 Crore in FY23 from INR 1,941.5 Crore in FY22, with its operating revenue climbing 14% to INR 5,463.9 Crore.

Ritesh mentioned during the town hall that the startup’s adjusted EBITDA reached INR 275 Crore in FY23, with expectations to ascend to around INR 1,000 Crore in the current fiscal year. Furthermore, OYO recently cleared INR 1,620 Crore of its Term Loan B (TLB), representing about 30% of its TLB due by June 2026.

In funding developments, the company is reportedly negotiating a nearly $400 Million funding round with Malaysian sovereign wealth fund Khazanah Nasional Berhad, aiming for a valuation of $6 Billion.

Established in 2012 by Ritesh Agarwal, OYO extends its services across various sectors, including holiday homes, casino hotels, coworking spaces, and more. Supported by SoftBank, the company refined its IPO ambitions last year, reducing the target from INR 8,430 Crore ($1.2 Billion) to $400-$600 Million, following its initial confidential IPO filing.

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