Oyo, the global hospitality giant, is gearing up for a public listing and aiming for a significant boost in profitability. Founder Ritesh Agarwal has revealed that the company is targeting a profit after tax exceeding INR 700 crore in the current financial year, a threefold increase from previous years. This ambitious goal is backed by strong performance in key markets and recent milestones. Earlier this year, Oyo achieved a remarkable feat by reporting its first-ever profit after tax (PAT) of nearly INR 229 crore for FY24. The momentum continued in Q1 FY25, where Oyo secured a PAT of approximately INR 132 crore, marking a significant recovery from a loss of INR 108 crore in the same quarter last year.
Agarwal attributed this growth to the company’s robust presence in crucial markets like India and Southeast Asia, where it has established a strong foothold. Additionally, Oyo’s expansion into the United States is yielding positive results, with a new property launched every three days. The company has also emerged as the largest value hotel platform in Indonesia and recently expanded its European footprint through a partnership with Checkmyguest in France.
Oyo’s growth trajectory is further solidified by its recent funding round, where it secured INR 1,457 crore in mid-August. Notably, Agarwal personally invested INR 830 crore through his wholly-owned entity, Patient Capital, increasing his stake from 29.97% to 32.57%. This round valued Oyo at USD 2.4 billion.
Since its inception in 2013, Oyo has grown to over 157,000 storefronts across 35 countries, solidifying its position as a major player in the global hospitality industry. The company’s aggressive growth strategy, coupled with its recent profitability milestones, makes Oyo a compelling investment opportunity as it prepares for its anticipated public listing.
