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OYO India sales hit $604 million, losses down to 14% in FY2019

New Delhi: Hospitality unicorn OYO Hotels & Homes on Monday announced that its standalone losses in India went down from 24 per cent in the financial year 2018 to 14 per cent in 2019 ($83 million) while India revenue grew by 2.9 times to $604 million.

The company’s consolidated revenue stood at $951 million in the financial year 2019 — 4.5 times (year-over-year) higher from financial year 2018 when the company reported $211 million in sales.

India contributed 63.5 per cent of fiscal revenue while global markets generated 36.5 per cent of total sales. The company’s gross margin in India increased from 10.6 per cent to 14.7 per cent.

“As we work towards consistently improving our financial performance, ensuring strong yet sustainable growth, high operational and service excellence and a clear path to profitability will be our key to our approach in 2020 and beyond,” Abhishek Gupta, Global CFO of OYO Hotels & Homes, said in a statement.

Nearly 36.5 per cent or $348 million was contributed by the company’s operations outside India, primarily China.

The company reported an increase in both daily guest check-ins across its network as well as an increase in hotels and asset owners across the world.

With over 43,000 asset partners, OYO hosted over 180 million guests from over 120 nationalities between January-December 2019.

The consolidated losses increased from 25 per cent to 35 per cent in FY19 on the back of international expansion, especially in China.

In 2019, OYO also continued to build a loyal guest base, with over 90 per cent revenue coming from repeat and organic user base, with repeat alone contributing to 73 per cent of revenues.

Since China and other international markets were in development and investment mode during that time, they contributed to 75 per cent of the losses for FY19 ($252 million).

“While consistently improving operating economics in mature markets like India where it’s already seeing an improvement in gross margins, the company is determined to bring in the same fiscal discipline in emerging markets in the coming financial year,a OYO said.

The OYO app is now among Top 3 Hotel booking apps globally with over 2.3 million downloads till October 2019 which has now increased to over 10 million downloads.

OYO Hotels & Homes has real estate comprising more than 43,000 hotels with over 1 million rooms.

Through its vacation homes business, the company offers travellers and city dwellers access to over 130,000 homes around the world under OYO Home, Belvilla, Danland, Dancenter and Germany-based Traum-Ferienwohnungen brands. The company operates in over 800 cities in 80 countries.

Source: Livemint