OYO is a new-age technology platform in the hospitality ecosystem, very fragmented globally, according to RedSeer. Since its incorporation in 2012, they have evolved in operations to redefine the landscape of alternative-stay accommodation. Right now, they have built a unique two-sided technology platform with a focus on answering key pain points of the Patrons-the owners, lessors, and/or operators of storefronts listed on the platform-on the supply side and the Customers-who are travelers and guests who book accommodation at the Patrons’ storefronts through OYO’s platform-on the demand side. The unique business model allows the Patrons to convert under-utilized, unbranded, and fragmented hospitality assets into branded, digitally enabled storefronts with higher revenue potential and gives Customers access to a wide assortment of high-quality storefronts at compelling price points. As of March 31, 2021, they had 157,344 storefronts listed on the platform across more than 35 countries. Patrons used the platform to manage all mission-critical aspects of their business operations. A comprehensive full-stack technology suite combines over forty products and services across the digital signup and onboarding, revenue management, daily business management, and D2C stacks with the two flagship Patron applications, Co-OYO and OYO OS. This gives the Patrons significant digital presence across the extensive distribution network. Customers can book storefronts through its direct channels and indirectly through third-party OTAs on the platform. The OYO mobile app has an array of digital tools that guide Customers from the discovery phase through to booking, pre-stay assistance and cancellations, digital check-in, and in-stay and post-stay services.
Business Model of OYO
OYO business model derives its strength from the patrons that list their storefronts on Oyo’s digital platform and the huge customer base interacting with those patrons’ storefronts through Oyo. The value proposition for patrons in the OYO hotel-and-homes portfolio depends on a full-stack integrated technology suite that renders possible all mission-critical aspects of running their business. It is in their interest that patrons cede to them the rights of distributing their storefronts on generally exclusive terms and grant a significant level of control in pricing decisions for their storefront inventory. This gives Oyo an edge in revenue maximization using dynamic pricing algorithms. They distribute patrons’ hotel and home storefront inventories through the D2C channels on their platform and through indirect channels with third-party OTAs and claim a general average revenue share of 20% to 35% of GBV (net of discounts and loyalty points), allowing strong alignment between the interests of Oyo and their patrons. Some patrons opt for a listing-only service where their storefronts are listed on their platform for a fixed fee.
Fundamental
Per Equity Share
Financial
P&L Statement
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 3962 | 4781 | 5464 | 5389 |
| Cost of Material Consumed | 0 | 0 | 0 | 0 |
| Gross Margins | 100 | 100 | 100 | 100 |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Employee Benefit Expenses | 1742 | 1862 | 1549 | 744 |
| Other Expenses | 4242 | 4079 | 4289 | 3937 |
| EBITDA | -2022 | -1160 | -374 | 708 |
| OPM | -51.03 | -24.26 | -6.84 | 13.14 |
| Other Income | 196 | 286 | 49 | 573 |
| Finance Cost | 560 | 746 | 681 | 844 |
| D&A | 392 | 299 | 280 | 200 |
| EBIT | -2414 | -1459 | -654 | 508 |
| EBIT Margins | -60.93 | -30.52 | -11.97 | 9.43 |
| PBT | -3877 | -1919 | -1286 | 236 |
| PBT Margins | -97.85 | -40.14 | -23.54 | 4.38 |
| Tax | 67 | 23 | 0 | 6 |
| PAT | -3944 | -1942 | -1286 | 230 |
| NPM | -99.55 | -40.62 | -23.54 | 4.27 |
| EPS | -1460740.74 | -14.63 | -9.68 | 1.72 |
Financial Ratios |
2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Operating Profit Margin | -51.03 | -24.26 | -6.84 | 13.14 |
| Net Profit Margin | -99.55 | -40.62 | -23.54 | 4.27 |
| Earning Per Share (Diluted) | -1460740.74 | -14.63 | -9.68 | 1.72 |
Balance Sheet
| Assets | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fixed Assets | 1825 | 1605 | 1582 | 1490 |
| CWIP | 0 | 1 | 0 | 1.2 |
| Investments | 471 | 605 | 510 | 455 |
| Trade Receivables | 101 | 256 | 158 | 203 |
| Inventory | 0 | 0 | 0 | 0 |
| Other Assets | 6354 | 5985 | 5682 | 4293.8 |
| Total Assets | 8751 | 8452 | 7932 | 6443 |
| Liabilities | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 0.027 | 132.7 | 132.8 | 133.8 |
| FV | 10 | 1 | 1 | 1 |
| Reserves | 2744 | 1311 | 449.7 | 767 |
| Borrowings | 3166 | 4664 | 5071 | 3603 |
| Trade Payables | 1143 | 1087 | 935 | 961 |
| Other Liabilities | 1697.97 | 1257.3 | 1343.5 | 978.2 |
| Total Liabilities | 8751 | 8452 | 7932 | 6443 |
Cash-Flow Statement
| Cash-Flow Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| PBT | -3877 | -1919 | -1286 | 236 |
| OPBWC | -2044 | -575 | 264 | 815 |
| Change in Receivables | 442 | -128 | 192 | 5.5 |
| Change in Inventories | 16 | 8 | 0 | 0 |
| Change in Payables | -1391 | -148 | -330 | -74.8 |
| Other Changes | 598 | 23 | 49 | -127.7 |
| Working Capital Change | -335 | -245 | -89 | -197 |
| Cash Generated From Operations | -2379 | -820 | 175 | 618 |
| Tax | -53 | -102 | -33 | -20 |
| Cash Flow From Operations | -2432 | -922 | 142 | 598 |
| Purchase of PPE | -91 | -72 | -81 | -36 |
| Sale of PPE | 10 | 5 | 6.4 | 2 |
| Cash Flow From Investment | 1705 | -711 | -109 | 1425 |
| Borrowing | 424 | 1282 | -53 | -1661 |
| Divided | 0 | 0 | 0 | 0 |
| Equity | 0 | 22.3 | 0.9 | 0.19 |
| Others From Financing | -901 | -600.8 | -652.9 | -752.19 |
| Cash Flow from Financing | -477 | 703.5 | -705 | -2413 |
| Net Cash Generated | -1204 | -929.5 | -672 | -390 |
| Cash at the Start | 3469 | 2395 | 1430 | 796 |
| Cash at the End | 2265 | 1465.5 | 758 | 406 |
