#IndianStartupData : OYO Rooms Had A Turnover Of INR 2.4 crores in FY 2014-15

[Editor Notes : Nothing is as powerful as data and these articles are part of our coverage of #IndianStartupData – i.e. an overview of financial performance of selected Indian startups with a hope that it gives you a good picture of the companies and the ecosystem in general.
Our Mission : A PR-less startup ecosystem which thrives on great products and services!]

If you have been around in your city any time recently, more likely than not, you would have spotted an OYO Rooms board. OYO is a branded network of hotels and is one of the fastest growing startups in India.ritesh-agarwal-oyorooms

Founded by Ritesh Agarwal (aged 19 years then) in 2012, OYO claims to be India’s largest branded network of hotels spread across 152 cities with more than 3000 hotels. Oravel Stays Private Limited, which owns and operates OYO Rooms, reported a turnover of INR 2.4 Crores in FY 2014-15, growing from a turnover of INR 51 lacs in the previous fiscal.

However, at the time, OYO appeared to have been present only in 10 cities with 200 hotels. They have seen a phase of exponential expansion in FY15-16 with two major funding rounds this year (OYO raised $100mn led by Softbank). More details are awaited on OYO’s financials and will be updated soon.

OYORooms Turnover
OYORooms Turnover

OYO’s Shareholding Structure

With the latest funding round from Softbank Group in August 2015, OYO’s current shareholding looks like this:

Founders18%
Lightspeed Venture Partners19%
Sequoia Capital18%
Softbank Group15%
Greenoaks Capital10%
DSG Consumer Partners4%
Others16%

With one of the youngest CEOs at its helm, OYO surely has managed to disrupt the hospitality sector in India so far. Going ahead, it’s going to be a tough battle with competitors like Zo Rooms and a number of others fighting it out.

[About the author: Vishal and Anchal form the team that runs the Tofler blog. They like to explore and track companies, their performance and senior management. Tofler (tofler.in) is a Business Research Platform.]

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7 comments
  1. True. The article says: “More details are awaited on OYO’s financials and will be updated soon”.

  2. What kind of a balance sheet shows only turnover without mentioning the profit and loss ?? I think with the details included this is going to get an anticlimax .. Nextbigwhat is doing PR .. Just PR ..

  3. Dude, Turnover is Gross Revenue. In this case , it is cumulative revenue of all the rooms they sold in a year. Its public knowledge and basic common sense that they are on loss and hence that data is irrelevant. This is good enough data to measure what they are upto. Going by this data, it looks like they are selling an average 27 rooms per day @ average price of 2k. This half the efficiency of a 75 room lodge in a tier-2 city with 60% occupancy rate.

  4. I believe OYO’s revenue comes from the booking commission it charges to room owners booked through OYO and not the entire tariff paid. In that case, this calculation does not hold good and their sales (rooms booked through OYO in this case) would be much higher.

  5. No – as Oyo is the hotel chain and assumes risk – by accounting laws they are allowed to book the entire room sale price as their revenue. Hence the calculation is right and their annual revenue (total sales of Rooms) or GMV is 2.4cr.

  6. I know travel agents report more revenue than this. Where is the money.. if the above data is true, valuation is absolutely flawed…Easy money and good PR and news traders ( Learnt it from PM Modi in an interview) creating all noise…Correction will be coming soon…

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