Oyo losses shoot up to $335 million

Budget hotel platform OYO Hotels & Homes reported a loss of $335 million, even as it saw revenues climb to $ 951 million globally, the company said in a statement on Monday. The rise in revenue is 4.5 times higher on a year on year basis, it added.

India contributed 63.5% of the fiscal revenue while global markets generated the rest. Oyo also said that its gross margin in India increased from 10.6% to 14.7%, the company said.

Oyo reported an increase in both daily guest check-ins across its network as well as an increase in hotels and asset owners across the world and said it hosted over 180 million guests from January to December last year.

In terms of losses, the company posted an increase in net loss from 25% of the revenue in FY'18 to 35% of revenue in the last fiscal. Oyo said that the inherent costs of establishing new markets, including those related to talent, market-entry, operational expenses among others, were the key factors behind the sharp increase in net loss percentage in the near-term. The company said that in India, Oyo has reduced losses to $ 83 million.

Abhishek Gupta, Global CFO, OYO Hotels & Homes, said, “We have crossed an important milestone of achieving global revenue of $951 million in FY 2019. As we work towards improving our financial performance, ensuring strong and sustainable growth, high operational and service excellence and a clear path to profitability will be our key to our approach in 2020 and beyond.”