OYO reveals numbers to show that the cash burn had reduced sharply even before the mass layoffs
OYOsaid its consolidated revenue stood at $951 million, which is an almost five times jump from its numbers last year.
- Its India specific losses fell from 24% to 14% to $83 million.
- The numbers may give OYO and its investors some confidence but the real challenge remains.
- OYO has to revive its brand after a series of complaints from hotel owners and consumers alike.
OYO said its consolidated revenue stood at $951 million, which is an almost five times jump from the $211 million a year earlier. Later today, board member Aditya Ghosh will be addressing a conference call to explain the numbers.
A creaking $10-billion edifice
In November, a valuation report on OYO’s financials showed that the company has reported a loss of ₹2,384.7 crore, almost six times higher than its losses a year earlier. However, according to OYO, this is largely because of the expansion in China in the second half of 2018.
The losses attributable to India had fallen from 24% of revenue in March 2018 to 14% of revenue in March 2019 and stood at $83 million. Its global losses stood at $335 million.
At the same time, founder Ritesh Aggarwal bought back shares from existing investors at a higher price boosting valuation to $10 billion. The propping up of valuation, amid mounting losses, raised a few eyebrows.
OYO’s India business is over half a billion dollars
OYO makes nearly two-thirds of its revenue, 63.5% to be precise, from India amounting to $604 million. The company also said that over 90% revenue came from organic users (those who book directly on OYO website or app). Returning customers on the OYO platforms make for 73% of the India revenue.
The numbers may give OYO and its investors some confidence but the real challenge remains. A series of complaints from hotel owners and consumers, and a tax search at the company headquarters in Gurgaon had hurt the brand in a big way in the last few months.
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