Full stack hospitality company OYO has pegged down losses by 27 per cent to Rs 363.7 crore in 2016-17 as compared to a previous financial year. It has witnessed seven times revenue growth at Rs 125 crore in FY17 compared to Rs 17 crore during 2015-16.
The revenue growth has largely been driven by over 2X growth in room nights and significant improvement in commissions.
The Gurugram-based company’s losses widen to a whopping 25 times in 2015-16 as compared to previous fiscal. It posted a loss of Rs 496 crore in FY16 while its expenses rocketed to Rs 520 crore in that period from about Rs 32 crore in FY2015.
“2017 has been a watershed year for us. We steered our growth trajectory by upgrading and bringing beautiful living-spaces in the value economy segment through OYO Rooms, while launching our operated brand Townhouse,” OYO founder and chief executive officer (CEO) Ritesh Agarwal said in a press statement.
According to Aggarwal, the company sees significant potential through ‘OYO Home’. It had launched Home Management Service to leverage its existing on-ground operations to deliver a solution to second home-owners. OYO Home focuses on locked and unused homes across top holiday destinations in the country.
After aggregating budget hotels for over three years, Oyo recently pivoted to become full stack hospitality company. It positions itself as pure-play franchise business which allows hotel partners to become Oyo branded hotel.
The hotels that were part of the aggregation model have converted into franchises. Presently, it claims to operate 8,500 hotels and 70,000 rooms in more than 230 cities in India.
So far, the company has secured about $442 million from likes of Softbank, China Lodging Group. The company also launched its new vertical OYO Townhouse in April this year. It takes complete operations under Townhouse and manages everything right from the interior, exterior to services.