OYO
Issue details
- Listing at
- NSE
- CIN
- U63090GJ2012PLC107088
- Registered office
- Ground Floor-001, Mauryansh Elanza, Shyamal Cross Road, Nr. Parekh Hospital, Satelite, Ahmedabad 380015, Gujarat, India
Company financials
Consolidated ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY21 | FY20 | FY19 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 41,573.86 | 1,34,132.68 | 65,184.57 |
| Revenue from operations | 39,616.49 | 1,31,681.52 | 63,297.36 |
| Other income | 1,957.37 | 2,451.16 | 1,887.21 |
| Total expenses | 69,360.75 | 2,28,001.2 | 88,094.28 |
| Operating profit | -27,786.89 | -93,868.52 | -22,909.71 |
| Operating margin | -66.84% | -69.98% | -35.15% |
| Profit before tax | -40,347.2 | -1,11,218.33 | -22,904.71 |
| Profit after tax | -39,438.44 | -1,31,227.77 | -23,645.32 |
| PAT margin | -94.86% | -97.83% | -36.27% |
| Balance sheet | |||
| Total assets | 87,510.48 | 1,41,089.82 | 1,17,426.08 |
| Current assets | 38,346.08 | 74,952.4 | 83,426.84 |
| Current liabilities | 34,140.14 | 40,465.73 | 22,314.84 |
| Total liabilities | 60,069.05 | 76,522.79 | 30,456.87 |
| Net worth | 27,441.43 | 64,567.03 | 86,969.21 |
| Current ratio | 1.12× | 1.85× | 3.74× |
| Return on equity | -143.72% | -203.24% | -27.19% |
| Cash flow | |||
| Operating cash flow | -24,326.33 | -67,650.79 | -20,006.98 |
| Investing cash flow | 17,056.71 | -46,828.24 | -25,693.62 |
| Financing cash flow | -4,771.19 | 1,03,853.1 | 90,746.03 |
| Net cash flow | -12,040.81 | -10,625.93 | 45,045.43 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Prepayment or repayment of borrowings ₹244 Cr
Prepayment or repayment, in part, of certain borrowings availed by our Subsidiaries
2 Funding organic and inorganic growth initiatives ₹290 Cr
Funding our organic and inorganic growth initiatives including expanding Patron and storefront base, expanding technology platform, enhancing global brand strength
3 General corporate purposes —
General corporate purposes and business requirements of the Company and Subsidiaries
1 of 3 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About OYO
Oravel Stays Limited, popularly known as OYO, was incorporated in 2012 as a private company in New Delhi and later shifted its registered office to Ahmedabad, Gujarat. Founded by Ritesh Agarwal, OYO operates a global platform offering short-stay accommodation solutions across hotels and homes. The company transitioned into a public limited entity in 2021, reflecting its growth trajectory. With a strong presence in India and international markets, OYO partners with property owners to enhance customer experience through technology-driven solutions. Its corporate office is located in Gurugram, Haryana. OYO is backed by prominent investors including RA Hospitality Holdings and SVF India Holdings.
Management
Ritesh Agarwal
CEO
Aditya Ghosh
Director
Bejul Somaia
Director
Troy Matthew Alstead
Director
William Steve Albrecht
Director
Deepa Malik
Director
Abhinav Sinha
COO
Ankit Mathuria
CTO
Abhishek Gupta
CFO
Dinesh Ramamurthi
Director of HR
Rakesh Kumar Prusti
Director
Vimal Chawla
VP of Marketing
Strengths
As stated in the offer document
Scaled Footprint with Leadership in Core Growth Markets
As at March 31, 2021, OYO had 157,344 storefronts across more than 35 countries listed on its platform. As at September 9, 2021, OYO had the largest footprint in terms of hotel storefronts in India and SEA and the second largest footprint in Europe in terms of home storefronts among full stack short-stay accommodation players, according to RedSeer.
Full-stack Technology Platform Driving Strong Value Proposition for Patrons and Customers
OYO's comprehensive, full-stack technology suite integrates more than 40 products and services across digital sign-up and onboarding, revenue management, daily business management and D2C stacks into two flagship applications, Co-OYO and OYO OS. The proprietary platform is highly differentiated and has been developed largely by in-house engineering and product and design teams.
High Degree of Engagement with Patron and Customer Community
OYO benefits from strong engagement with Patrons and Customers, leading to healthy retention rates and revenue share retention. The platform is deeply integrated with mission-critical functions of Patrons' businesses. OYO generates a significant share of demand through D2C channels, with 74.5% in FY2020 and 71.2% in FY2021 globally.
Virtuous Flywheel Driven by Strong Network Effects
The scale of OYO's business drives a self-reinforcing flywheel underpinned by strong local network effects and operating leverage. This enhances platform stickiness and unit economics for OYO and Patrons with increasing scale.
Inherent Financial Strength with Strong Unit Economics
OYO has an asset-light business model and lean cost structure. As at March 31, 2021, 99.9% of storefronts do not have fixed payout commitments or minimum guarantees from OYO. This enables capital-efficient scaling with minimal marginal costs. Contribution Profit improved from 5.1% in FY2020 to 18.4% in FY2021.
Strong and Trusted Consumer Brand
OYO was identified as the most valuable Travel and Hospitality brand in India and 30th most valuable brand overall in India by a study conducted by Kantar for 2020 (BrandZ India 2020 Report).
Strong Leadership Team with Deep Experience
OYO is led by a management team with strong academic credentials and deep experience across various industries. The leadership team has diverse skills and backgrounds, with experience from leading technology companies and consulting firms.
Risk factors
As stated in the offer document
Impact of COVID-19 pandemic
The novel coronavirus (COVID-19) pandemic and the measures taken by governments to curb its spread have materially and adversely impacted, and are expected to continue to materially and adversely impact, the travel industry and the company's business, results of operations, financial condition and cash flows. The extent to which the COVID-19 pandemic will further impact the company's business, operations and financial performance is uncertain.
History of Net Losses
The company has incurred net losses in each year since incorporation, and its ability to achieve profitability may be uncertain.
Growth and Expansion Challenges
The company may not continue to grow on pace with historical rates and may face difficulties in executing its expansion plans and implementing its growth strategies.
Customer Retention and Acquisition
If the company fails to retain existing customers or acquire new in a cost-effective manner, its revenue may decrease and its business, results of operations and financial condition could be adversely affected.
Brand Reputation
Maintaining and enhancing the company's brand and reputation is critical to its growth, and negative publicity could damage its brand and thereby harm its ability to compete effectively, and could materially and adversely affect its business, results of operations and financial condition.
Innovation and Technological Developments
If the company does not continue to innovate and develop its platform, or it does not keep pace with technological developments, it may not remain competitive and its business and results of operations could be adversely affected.