Hospitality unicorn Oyo, operated by Oravel Stays Limited, reported a loss of Rs 413.9 crore for Q1FY23, as it prepares internally for a public listing this year.
The company said it is has turned operationally profitable for the first time in the quarter-ended June before accounting for costs related to its employee stock option grants.
The company is now looking for an IPO in the third quarter of FY23 -- or before December 2022 -- provided market conditions remain conducive, people familiar with the matter said.
Oyo reported an adjusted Ebitda (earnings before interest, taxation, depreciation and ammortization) of Rs 7 crore before 'share based expenses'.
Share based expenses are related to Esop (employee stock option) grants.
This was driven by growth in monthly gross bookings value per hotel, according to the people cited above.
According to documents filed with markets regulator Sebi, Oyo's loss for FY22 came in at Rs 2,139.9 crore versus Rs 4,103.3 crore in the previous fiscal.
The SoftBank-backed firm reported its FY22 Ebitda loss at Rs 471.7 crore in FY22 versus a loss of Rs 1,744.7 crore in FY21.
With the additional filing, OYO is seeking to revive its plans for an initial public offering (IPO) in tough economic conditions. It had filed its draft red herring prospectus (DRHP) with Sebi last year in October. Earlier in May 2022, it had sought Sebi’s permission to include restated financial statements for the six months ending September for fiscal years 2022, 2021 and 2020.
The Gurugram-based startup was founded by Ritesh Agarwal. The company delayed the public market debut initially planned for September 2022 at a lower valuation of around $7-8 billion versus the earlier planned figure of $11 billion.
The Softbank-backed hospitality company said that its monthly gross bookings value per hotel saw a 47% growth in the first quarter FY23 to Rs 3.25 lakh from Rs 2.21 lakh in the financial year 2022. The recovery comes on the back of rising travel demand due to the ease in domestic movement restrictions in the market where it operates.
The company is focusing on markets including India, Indonesia, Malaysia, and Europe. Moreover, in May this year, the hospitality giant acquired Direct Booker for $5.5 million to strengthen its presence in Europe. The European company manages more than 3,200 vacation homes in Croatia. With the acquisition, Oyo increased its footprint in Croatia specifically.