Oyo Rooms turns profitable with 15x growth year over year

According to a report shared by the OYO Rooms, SoftBank-backed budget hotel room aggregator OYO Rooms said it has attained profitability at an aggregate level, which means, on an average, they are making profit on every room sold.

Oyo Rooms claimed that it was operationally profitable until June 2015 before it went for expansion but regained profitability at a network level from February 2016, as per a statement.

Ritesh Agarwal, Founder and CEO, Oyo Rooms said,

“Our team delivered 15 times year-on-year growth with 2.3 million booked room-night transactions in the January-March 2016 quarter while our gross merchandise volume (GMV) continues to grow every month. Over 95% of the traffic comes from our own sales channels such as app, web and call centre”

Gurgaon, Delhi, Hyderabad and Kolkata have been among the cities which have been driving profitability for the company. The firm aims to triple its inventory by December 2016, he said.

Ritesh credited the profitability to OYO’s innovating revenue-sharing models, a deep understanding of markets, to enabling new demand growth channels, and a strong data science driven approach to control occupancy and room pricing.

In April this year, Oyo Rooms had raised $100 million in its fifth round of funding from existing investors including Japan’s Softbank, and an international sovereign fund. The startup, has forayed into south-east Asia through the launch of its operations in Malaysia.

Founded in 2013 by Ritesh Agarwal, Oyo rooms is one of the largest aggregator in Hotel rooms in the country. The company has already raised a total of $125.65 million in four rounds.

In February 2016, OYO Rooms had acquired Tiger Global-backed smaller rival Zo Rooms in an all-stock deal.

This article was originally published in KnowStartups



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