Revenues from OYO are expected to reach over Rs 5,700 in FY23

According to its Founder & Group CEO Ritesh Agarwal, OYO's FY23 revenue will exceed Rs 5,700 crore, up 19 percent from Rs 4,780 crore in FY22.

At a town hall on Monday, Agarwal told employees of the firm that OYO is aspiring to reach adjusted EBITDA of nearly Rs 800 crore in the next financial year.

In a presentation to employees, he said the company's financials have improved due to sustained growth in India, Indonesia, the US, and the UK, as well as relevant optimization and synergies in its European vacation home business. In the presentation, Agarwal said OYO's revenue for FY2023 is expected to be over Rs 5,700 crore, up around 19 per cent from the Rs 4,780 crore achieved in FY2022.

Agarwal outlined that the key focus areas of OYO in the calendar year 2023 will be on Profit After Tax (PAT) along with consistent momentum in EBITDA; achieve cash flow positive in FY24; cost efficiency and improving contribution margins and making storefront additions, among others.

Agarwal told the employees that OYO has a current cash balance of Rs 2,700 crore and the company hoped it would end up consuming very little of it for existing operations. With an improvement in cash flow, OYO's reliance on external funds has also gradually decreased overtime, he added.

As per its filing with Securities and Exchange Board of India (Sebi), the company reported adjusted EBITDA of Rs 63 crore in the first half of FY2023 in its Draft Red Herring Prospectus (DRHP).

In January, OYO was asked by Sebi to refile the draft IPO (Initial Public Offering) papers with certain updates. In September 2021, OYO had filed preliminary documents with Sebi for a Rs 8,430 crore-IPO.

Due to volatile market conditions at the time, the IPO was delayed, and the company settled for a lower valuation of USD 7-8 billion instead of USD 11 billion.