OYO Unlisted Share Prices

OYO Hotels & Homes is a renowned hospitality company that has revolutionized the hotel industry with its innovative approach to affordable and comfortable accommodations. Founded in 2013 by Ritesh Agarwal, OYO has rapidly expanded its presence across the globe, operating in over 80 countries and managing more than 1.2 million rooms. The business offers consumers the option to choose rooms and living areas that best fit their needs at an affordable price.

Timeline

2013: Opens first oyo in Gurugram

2014: Received Series-A funding

2015: Launch of oyo app Expanded to 100 cities and crossed 10000 rooms

2016: First overseas expansionin Malaysia Hit 1 million checkin for the first time

2017: Launch of oyo townhouse

2018: Expansion outside of Asia-UK Expanded to China and Indonesia

2019: Launched in US, Europe and Middle East

2020: Acquired @Leisure to enter vacation home business across 40 countries

2021: Launched OYO360, a self onboarding platform for patrons.

Business Model

Earlier Model: OYO’s initial business model was to pre-book hotel rooms at a discounted price then sell these rooms on their platform, usually at a higher price. Their revenue was the difference between their price and the price they sold the room for.

Current Model: Slowly OYO has shifted their focus from being an aggregator to managing the entire hotel property.

Oyo presently sells the complete inventory of hotels under its very own branding. This is beneficial for hotels, listed on the OYO platform gives them more traction and helps them acquire more business. And as commission Oyo charges 22% from its hotel partners.

Global Presence

Funding Details

2015: $25 million from investors namely Lightspeed India, Sequoia, and others.

2015: OYO received $100 million in a Series C funding investor SoftBank.

2018: OYO got $800 million from SoftBank.

2019: OYO raised a total of $807 million from Ritesh Agarwal-led RA Hospitality Holdings and SoftBank in series F funding

2021: OYO’s latest funding has come from Microsoft in July. The firm invested  $5 Million.

Oyo withdraws IPO and goes for private placement? Let’s get a quick overview on this!

Oyo filed a confidential DRHP with SEBI by downsizing the IPO size by 40-60% in April 2023, however OYO has withdrawn its IPO in May 2024 and is going for a private placement. Read more about how OYO sought private funding due to the long IPO wait time.

Key things to note :

·Oyo plans to raise money privately at a valuation as low as $2.3 billion, which is at a cut of almost 74% from its peak valuation of $9 billion OYO achieved back in 2021 from Microsoft.

·InCred Wealth and Investment Services Private Limited is the key institutional buyer in this round.

·      14,37,41,379 Series G fully and compulsorily convertible cumulative preference shares (Series G CCPS) to be issued at a price of INR 29 per share.

·Total fund raised : 417 crores and the conversion ratio is set to be 1:1 meaning every CCCPS to be converted into 1 equity share

·Object of the issue - For general corporate purposes and other business-related activities, including supporting the continued growth of the Company, supporting the Company’s global expansion (including acquisitions), and enhancing the business plan.

Segregation Of 700Cr Number Of Equity Shares 

1. 133 Cr Number Of Actual Equity Shares
2. 567 Cr Number of Preference Shares Convertible To Equity Shares 

Financial Summary

• FY 23-24 - The company turned PAT positive for the entire fiscal year, its first since inception, clocking a profit of INR 2,292.6 million. The company’s consolidated adjusted EBITDA improved by ~216% to INR 8,735.09 million for the FY24 as against INR 2,777.42 million in the FY23.
• The company’s Adjusted Gross Profit margin remained strong at 23.6% in FY24 (23.2% in FY23) despite a substantial addition of new inventory.
• The Company has not transferred any amount to any Reserves account for the Financial Year 2023-24
• .As on April 1, 2023, the authorized share capital of the Company was INR 9,01,13,59,300/- and there is no change in the authorised share capital of the Company.for the year ended 2023-2024.

Financial Insights

Fig In Cr

Calculation of Market Capitalization

Key Highlights from FY-23:

1. EBITDA Positive: ₹900 crores, maintaining profitability for the last eight quarters.
2. PAT Positive: ₹100 crores, indicating net profit after all expenses and taxes.
3. Fitch Ratings Upgrade: Upgraded to 'B' from 'B-' with a stable outlook, validating Oyo's financial strength and strategic progress.

OYO has maintained profitability for the last eight quarters, achieving an EBITDA of ₹900 crores and reducing losses. Read more about how OYO achieves these milestones.

Strategic Moves Paying Off

• Exited non-core markets.
• Renegotiated loans.
• Focused on profitable hotel partnerships.

Seeking New Funding

• Oyo is in talks to raise new funds at a valuation of $2.3 billion (₹19,170 Cr).

Comparison with Peers

• Oyo's current market cap is ₹21,960 Cr with an expected share price of ₹32, down from its peak valuation of $9 billion in 2021.
• Despite the lower valuation, Oyo's strategic progress and financial milestones highlight its substantial growth potential in the hospitality sector.

Future Outlook

• With a solid track record of profitability and strategic refinements, Oyo is poised for future growth.
• Investors are keeping a close eye on Oyo’s next moves as it continues to strengthen its market position and financial stability.

Oyo Annual Report 2023-2024

Oyo Annual Report 2022-2023

 Oyo Annual Report 2021-22