OYO’s Q4 Revenue To Surge 60% To INR 2,100 Cr: Ritesh Agarwal

SUMMARY

In an email to OYO’s senior leadership team, Agarwal said that increase in quarterly revenue reflects OYO’s ability to drive sustainable and profitable growth

Excluding the contribution of US-based G6 Hospitality, acquired by OYO last year, the unicorn’s revenue is expected to grow 42% YoY to INR 1,886 Cr in Q4

OYO turned profitable in FY24, posting a net profit of INR 229 Cr. However, its revenue declined 1.3% YoY to INR 5,388.78 Cr

OYO founder Ritesh Agarwal expects the travel tech major’s Q4 FY25 revenue to zoom 60% year-on-year (YoY) to INR 2,100 Cr.

Citing an email sent by Agarwal to the startup’s senior leadership team, PTI reported that the founder said the jump in quarterly revenue reflects OYO’s ability to drive sustainable and profitable growth.

“We are on track to register over 60% YoY revenue growth in Q4 FY25, reaching over INR 2,100 Cr. This marks a significant milestone and highlights our ability to drive sustainable, profitable growth. A key contributor to this performance has been the successful integration of G6 Hospitality, adding INR 275 Cr to our revenue,” the report quoted Agarwal as saying.

Excluding the contribution of US-based G6 Hospitality, the parent of Motel 6 and Studio 6, the unicorn’s revenue is expected to grow 42% YoY to INR 1,886 Cr, Agarwal added.

OYO refused to comment on Inc42’s queries on the development, saying the email was for internal consumption.

It is pertinent to note that OYO clocked its maiden profitable year in FY24. While it posted a net profit of INR 229 Cr, its revenue declined 1.3% YoY to INR 5,388.78 Cr in FY24.

OYO Bets Big On G6 Hospitality

In order to shore up its revenue and expand presence in the US, OYO acquired G6 Hospitality from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction in September last year.

The move was aligned with OYO’s strategy to increase its presence in international markets like Europe and the US, where it earns higher revenues. As part of this, OYO also acquired Paris-based rental homes company Checkmyguest for INR 230 Cr in a cash and stock deal in August last year.

The unicorn is especially bullish on G6 Hospitality. Earlier, Agarwal said that the US-based motel chain would lead to an improvement in its top line in FY26. Besides, the hospitality unicorn expects G6 Hospitality to contribute INR 630 Cr to its overall EBITDA of INR 2,000 in FY26.

Overall, Agarwal expects OYO to report a profit of INR 1,100 Cr in FY26.

OYO’s Expansion Spree Ahead Of IPO

The startup is looking to make big investments to increase its revenue from overseas markets. Earlier this year, it said it would invest £50 Mn (about INR 450 Cr) in the UK over the next three years to strengthen its premium hotel portfolio.

Besides, it was also looking to invest $10 Mn (about INR 86 Cr) to strengthen the digital assets of G6 Hospitality.

All of these come ahead of the potential IPO of the startup, which provides holiday homes, coworking spaces, budget hotels, corporate stays, among others. In February, a report said that Agarwal was facing pressure from its creditors to take the startup public by October this year or pay $383 Mn as part of a loan he took.

It is pertinent to note that the startup’s IPO has been in limbo for years. It first filed its draft papers with SEBI in 2021 for INR 8,430 Cr public issue.

Overall, OYO has raised a total funding of about $4.5 Bn till date and counts the likes of SoftBank Group, Peak XV Partners and Microsoft, among others, as its investors.