Ritesh Agarwal-founded OYO Hotels & Homes has expanded its top management and has hired former McKinsey Partner Ankit Gupta as its new chief operating officer. The move comes in line with the company’s plan “to continue to invest in and attract world-class leadership, to drive innovation and growth in the company,” OYO announced in a statement. The company has appointed him in a “newly created management position” and Ankit Gupta will report to Rohit Kapoor, CEO, OYO Hotels & Homes, India & South Asia. He will oversee OYO’s three frontier businesses including self-operated hotel brands, student housing and co-living and OYO Home businesses.
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With the new appointment, OYO expects to drive the next phase of sustainable growth in its frontier business, Rohit Kapoor said. “Over the last six years, we have invested in building distinctive capabilities in the acquisition, renovation, and upgradation of different forms of real estate,” he added. At McKinsey, Ankit Gupta was trusted with leading the company’s real estate transformation practice and handled P&L impact improvement (scale & profitability) for real estate clients.
OYO’s cash burn continues
Meanwhile, OYO is burning a lot of money and its losses have mounted to more than 6.6 times to Rs 2,385 crore in the year to March 2019, as per the company’s valuation report filed with the RoC. OYO’s revenues from operations rose to Rs 6,457 crore, a hike of 4.5 times, Financial Express Online reported in November. The total expenses have also swelled to about Rs 9,027 crore from Rs 1,835 crore in the financial year 2017-18. .
OYO is also in the process of raising $1.5-billion Series-F financing round led by SoftBank, according to business signals platform Paper.vc. The Gurgaon-based unicorn company recently filed documents with RoC indicating the board approval for the same.
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Source: Financial Express