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Ritesh Agarwal, Founder and CEO of OYO, is set to increase his shareholding in the company to 32% with a fresh infusion of ₹550 crore ($65.1 million). This investment, at a 45% premium, boosts OYO’s valuation to $3.4 billion, up from $2.4 billion in August 2024. The funds will support OYO's growth strategy, which recently included the $525 million acquisition of G6 Hospitality, adding 1,500 Motel 6 and Studio 6 locations across the US and Canada. With two consecutive profitable quarters in FY25 and FY24 revenue of ₹5,541.6 crore, OYO continues to scale new heights in the hospitality industry. Read the full story to learn more about OYO’s journey of innovation and expansion! #oyo #hospitality #riteshagarwal #startupnews #investment #businessgrowth #techinnovation #globalexpansion #startupstory

 💼 Ritesh Agarwal Leads $175 Mn Round in OYO; Valuation Slashed to $2.37 Bn. OYO's founder and CEO, Ritesh Agarwal, has led a $175 million funding round for the hospitality unicorn. However, the company's valuation has been reduced to $2.37 billion, a significant cut from its previous highs. 🔍 Key Details: - Funding Amount: OYO has secured $175 million in fresh capital, with Ritesh Agarwal playing a pivotal role in this round. - Valuation Drop: The company's valuation has been adjusted down to $2.37 billion, reflecting the challenges faced in the hospitality sector. 📉 Context & Implications: - Market Conditions: The reduced valuation underscores the tough market conditions OYO has been navigating, particularly in the post-pandemic landscape. - Strategic Focus: Despite the valuation cut, the new funding will enable OYO to focus on strengthening its core business, improving profitability, and exploring new growth avenues. Ritesh Agarwal's continued investment in OYO signals a commitment to steering the company through challenging times, aiming for a stronger resurgence in the future. #OYO #RiteshAgarwal #StartupNews #Funding #BusinessUpdates #Microshots

But why did OYO need 12 years to get to this point? 🚀 OYO Reaches ₹229 Crore in FY24, First-Ever Profit After Tax (PAT)! OYO, the unicorn in the hotel industry, announced its first-ever profit after tax (PAT) of ₹229 crore in FY24, marking a significant milestone. 🎉 OYO is redefining the hotel business with a remarkable 215% rise in adjusted EBITDA to ₹877 crore and 13% cost reductions. OYO has surpassed its initial profit prediction, and its founder Ritesh Agarwal expressed his joy by saying that the company is now focusing on achieving ₹1 EPS in FY25. This accomplishment is evidence of OYOpreneurs' unwavering work ethic and dedication to creating something truly remarkable. 🌍 OYO's global expansion is well underway, despite a steady ₹5,388 crore in consolidated revenue from operations. With more than 18,000 properties in its inventory, the company is experiencing rapid expansion in the US, Europe, Southeast Asia, and the Middle East. OYO's position in the premium homes market is further strengthened by the acquisition of K&J Consulting in Paris. With more than 300 locations in the US and expanding into Southeast Asia, OYO is quickly establishing itself as a major player in the world market. Strong backers such as Patience Capital Group, J&A Partners, InCred Wealth, and JP Morgan offer optimism for OYO's IPO preparations. Did this actually increase investors' confidence prior to the IPO? Comment your thoughts? #OYO #Entrepreneurship #GlobalExpansion #Profitability #Hospitality #Innovation

🚀OYO Achieves Profitability: A New Era for the Hospitality Giant 🎉 OYO has reached a major milestone by reporting its first-ever annual profit with a PAT of ₹229 crore in FY24! This turnaround is a result of focused cost optimization, tech-driven operations, and a continued push into global markets. From a ₹1,286 crore loss last year to a profitable business today, OYO's journey is a testament to resilience and innovation. 📊 Key Numbers: Adjusted EBITDA surged 215% to ₹877 crore. Earnings per share (EPS) hit ₹0.36, a sharp improvement from a loss of ₹1.93 in FY23. OYO’s revenue remained strong at ₹5,388 crore. Significant global expansion, including acquisitions like Checkmyguest in Europe, and inventory growth to over 18,000 properties. This achievement is just the beginning as OYO eyes even bigger opportunities in the global hospitality market. 🚀🌍 #OYO #Profitability #HospitalityTech #BusinessGrowth #TravelTech #GlobalExpansion

OYO reported its first full year of profitability in FY24, posting a net profit of about INR 100 Cr – a big turnaround from the INR 1,000 Cr net loss in FY23. So what really worked out for OYO in FY24? 👇 🔸 In FY23, the company shed a lot of its inventory of rooms and culled its low-performing, low-customer experience hotels to focus on profitability – its hotel count decreased from 12,000 to 8,000. 🔸 Following this, the company increased the number of hotel partners in FY24. 🔸 OYO zeroed in on some properties to onboard them and improve visibility and also launched new brands. For instance, in April 2024, OYO launched a joint venture with lead investor SoftBank under the luxury hotel chain brand ‘Sunday’. 🔸 A sharp focus on spiritual and sports tourism as well as premium hotel bookings helped OYO turn things around and reach profitability according to multiple sources that Inc42 spoke to. 🔸 Sources close to OYO also claim the company has scaled down overseas from 80 geographies to 35 today. This means a bigger focus on the markets that are bringing in revenue and where the company does not have to go up against big competition. Let’s take a closer look at OYO’s house of brands  👀 Ritesh Agarwal #oyo #brands #startups

OYO has recorded its first-ever net profit in the fiscal year ending March 2024 and has raised $175 million in equity funding from a clutch of investors. In addition, the company is looking to raise $200 million at a valuation of $4.5 billion or upwards and to acquire G6 Hospitality. Overall, it has been a season of lots of good news for the budget hotel operator and its co-founder Ritesh Agarwal is now being hailed as a turnaround leader. The reality, however, is rather dull. Ashish K Mishra peels back the layers of this turnaround and explains why it is only some smart financial engineering: https://lnkd.in/djXWk8Um

According to our latest equity research report, OYO is trading at an attractive discount of 143% in unlisted market. OYO stands out as a transformative force in the hospitality industry, redefining hotel aggregation and franchising. Founded by the esteemed entrepreneur Ritesh Agarwal, who gained widespread admiration on Shark Tank India Season 3. For those interested in investment opportunities, Sharescart.com offers a seamless platform to trade shares of OYO. Despite not being publicly listed, Sharescart.com enables the buying and selling of unlisted and pre-IPO securities, opening the door to exclusive investment prospects. #oyo #equity #unlistedmarket #sharktank #privatefunding #privateequity #unlisted

From making a loss of ₹13,000 crores to becoming the most profitable company in India How did OYO do it? Their business strategy is worth taking notes. Four years ago, the hospitality startup was making a staggering ₹13,000 crore loss. But now, it has become profitable, setting the stage for a highly anticipated IPO. Here's how OYO transformed its losses into profits: - Streamlining the business model: To reduce fixed costs, OYO discontinued its rental townhouse and MG model properties. It then focused on increasing the revenue per property by cutting down 40% of its 19,500-strong portfolio. - Driving operational efficiency: Aggressive cost-cutting measures, including significant job cuts, helped OYO survive in COVID-19. As a result, while its revenue fell from ₹13,000 crore to ₹4,000 crore during the pandemic, its losses also declined proportionately. The company's strategic shift from budget properties to mass premium and luxury offerings further bolstered its unit economics. In the last fiscal year, OYO added 1,000 new premium properties and 10 self-operated luxury properties, with plans to add 13 more this year. This combination of cost optimization and strategic pivot has propelled OYO to profitability, with a reported PAT of ₹15 crore in Q2 FY24, ₹30 crore in Q3, and a projected ₹100 crore in Q4. As the company gears up for its highly anticipated IPO, slated for as early as July, OYO's remarkable turnaround serves us a lesson in adaptability, resilience, and the power of data-driven decision-making. What do you think of OYO’s strategy? Was it the right way? Let me know in the comments. #casestudy #oyo #businessmodel

📊 OYO Logs First-Ever Profit of INR 229 Cr in FY24. OYO, the hospitality giant, has reported its first-ever profit of INR 229 Cr in FY24, marking a significant turnaround in its financial performance. This achievement is a major milestone for the startup, which has been focusing on cost-cutting measures and enhancing its operational efficiency. 🔹 Key Financials: - Profit: INR 229 Cr in FY24. - Turnaround: The company's efforts in improving profitability have paid off, positioning OYO for future growth. 💡 Background: - OYO's Journey: Founded in 2013, OYO has been a major player in the hospitality industry, offering budget accommodation options across the globe. - Previous Losses: The company had faced mounting losses in previous years but implemented restructuring strategies to boost profitability. 🚀 Growth Strategies: - Cost-Cutting: OYO's focus on reducing expenses and improving efficiency has contributed to its positive financial performance. - Market Expansion: The company continues to expand its footprint in both domestic and international markets. 📈 Market Impact: - Investor Confidence: OYO’s profitability is likely to boost investor confidence as it gears up for future growth. - Competitive Edge: The company’s financial success strengthens its position in the highly competitive hospitality industry. #OYO #Profit #Hospitality #StartupSuccess #BusinessNews #MicroShots #NewsUpdates

OYO Hotels and Homes, backed by SoftBank , has withdrawn its draft prospectus for an initial public offering (IPO) in India for the second time, signaling a strategic shift in its fundraising approach. The company is now focusing on private investment opportunities, with a potential valuation around $2.3 billion, significantly lower than its previous peak of $9 billion. With substantial stakes held by SoftBank (46%) and CEO Ritesh Agarwal (33%), Oyo is leveraging strong investor backing to stabilize and pursue sustainable growth. The move reflects Oyo's agility and resilience, emphasizing its commitment to innovation and operational excellence as it navigates the post-pandemic hospitality landscape. #OyoHotels #HospitalityIndustry #SoftBank #IPOWithdrawal #PrivateInvestment #StrategicShift #FinancialResilience #COVID19Impact #TechInnovation #SustainableGrowth #fundsfever