OYO’s Profit Zooms 2.7X To INR 623 Cr In FY25: Ritesh Agarwal

SUMMARY

In a townhall meeting, founder and CEO Ritesh Agarwal told employees that OYO has become the “most profitable startup in the country”

The startup’s revenue grew 20% to INR 6,463 Cr from INR 5,388.7 Cr in FY24, on the back of a 54% YoY increase in its gross booking value

The SoftBank-backed startup’s adjusted EBITDA grew 27% to INR 1,132 Cr in FY25 from INR 889 Cr in the previous year

OYO’s net profit more than doubled year-on-year in FY25, with the hospitality major becoming the “most profitable startup in the country”, its founder and CEO Ritesh Agarwal told employees during a townhall meeting today, sources told Inc42.

During the townhall, Agarwal claimed that the startup’s net profit jumped 172% to INR 623 Cr in FY25 from INR 229 Cr in the previous fiscal year. Its top line grew 20% to INR 6,463 Cr from INR 5,388.7 Cr in FY24.

Further, the IPO-bound startup also saw a 54% year-on-year (YoY) increase in its gross booking value to INR 16,436 Cr.

The travel tech major’s adjusted EBITDA grew 27% to INR 1,132 Cr in FY25 from INR 889 Cr in the previous year.

It is pertinent to note that Agarwal earlier said that OYO’s EBITDA for FY25 would come in at INR 1,550 Cr. The latest number is nearly 26% lower from his earlier prediction.

OYO expects its net profit to touch INR 1,100 Cr in FY26.

Q4 Numbers Provide A Big Boost

As per the sources, the fourth quarter of FY25 contributed the most to the overall performance of OYO for the fiscal year. In the quarter, the startup saw a 41% YoY jump in revenue to INR 1,872 Cr. EBITDA also zoomed 61% YoY to INR 442 Cr.

This growth was fuelled by the growing number of properties operated by the startup. Its managed properties increased to 256 in Q4 FY25 from just seven in the year-ago quarter. OYO’s global presence now stands at 22,700 hotels and 1,19,900 homes, along with 91,300 listings across its platform.

About 30 of its premium category chain ‘Sunday hotels’ were added by the startup in the last 12 months in India, Saudi Arabia, UAE, and Southeast Asia. Earlier in August 2024, OYO shared plans to set up 25 new hotels under the ‘SUNDAY’ brand during FY25.

Notably, OYO also announced two major acquisitions over the past year – Paris-based Checkmyguest and US-based G6 Hospitality.

OYO’s IPO Plans

OYO has been mulling to get listed on the Indian stock exchanges for some years now. The startup’s third attempt at listing was supposed to materialise by October 2025.

However, it was reported earlier this month that it will likely defer its plans to go for an IPO by a few months. As per a report, OYO’s early investor SoftBank, which holds over 30% stake in the startups, advised it to delay the public issue amid the ongoing volatility in the market. OYO is now expected to go public by March next year.

OYO made its first attempt to go public in 2022, when it filed its draft red herring prospectus (DRHP) to raise INR 8,430 Cr (near $1 Bn). However, it cancelled its plans due to adverse market conditions.

In 2023, the startup again filed its DRHP via confidential route, cutting the size of its IPO to $400 Mn to $600 Mn. But, it withdrew the IPO papers ahead of raising $450 Mn through the sale of dollar bonds.