MUMBAI: Oyo Hotels & Homes has recorded its first profitable year in FY24, posting a net profit of nearly Rs 100 crore, founder Ritesh Agarwal said on Thursday.
“This (Jan-March quarter) was our eighth consecutive quarter of a positive ebitda (earnings before interest, taxes, depreciation and amortisation) and we also have a cash balance of about Rs 1,000 crore,” Agarwal said in a post on X, adding that the numbers are provisional.Ebitda is a metric of operational profitability.
Oyo is among a batch of late-stage startups that have been working towards reducing cash burn, building in operational efficiencies and achieving profitability. A global tech downturn and reset in startup valuations nudged companies to set their finances in order and chase prudent growth. Investors have been maintaining a cautious stance and only cutting cheques for companies which have at least been able to demonstrate a path to profitability.
Oyo recently withdrew its draft IPO papers for the second time and is negotiating with investors for a fundraise at a lower valuation. The fresh funding could be at a 70% drop from its peak valuation of $10 billion, TOI reported last week. Insiders claim that Oyo plans to refile IPO papers after refinancing its $450-million loan.
