The Hindu Business Line
Oyo to bring down losses to 10% of revenues by year end
Oyo Rooms is targeting to bring down its losses to 10 per cent of its revenues by the year-end according to the recently appointed CEO, Aaditya Ghosh.
The company also plans to expand its footprint in Nepal, Sri Lanka and Maldives, among other international destinations.
The unicorn last year had losses of 20 per cent of its revenues, and the previous year had losses of 45 per cent. The company last year entered the unicorn club with a fund raising of $1 billion according to reports.
Ghosh, who recently joined the Oyo group from Indigo airlines said, “We brought it down to half last year, we got it down to half this year as well, now our guidance is bring it to 10 per cent, and we are working towards it.”
Growth this year
“Our annual revenues grew by 4 times this year. So, you’ll rarely see high growth companies of our size that are hitting both growth and economics at this scale. It’s difficult to find a company which is five years old and is growing at this scale,” he added.
Quoting a JP Morgan study, Ghosh said Oyo is growing 14 times faster than any other hospitality brand.
Oyo last year added 4.15 thousand rooms, which went up to 53 thousand room this year. According to Ghosh, “Oyo is planning to double its operations in South Aisa this year. Currently 300 cities in South Aisa have the presence of Oyo Rooms.”
Besides South Asia, Oyo sees to expand its footprints in Nepal with 200 properties already listed with Oyo. Besides Nepal, Oyo Rooms sees expansion in Maldieves and Sri Lanka.
Approximately 1,40,000 people use Oyo rooms everyday, the occupancy rates in most of the brands of Oyo Rooms on an average is 60 per cent.
“We want to focus on being a multi-brand strategy. With giving our customers what they need. With 93 per cent of the customers are repeat customers being repeat customers, we also want to focus on giving them better quality products as well,” Ghosh said.