OYO IPO Important Details:
|Bidding Date||Not Yet Announced|
|Lot Size||To be Announced|
|Price Range||To be Announced|
|Issue Size||To be Announced|
|Allotment Date||To be Announced|
|Offer Document||Download Here|
OYO: Binds Storefronts, Customers on Technology Platform
The OYO is built on the parent organization “Oravel Travels Ltd.“, and since 2012 Ritesh Agarwal (Managing Director) is up in the competitive markets nestling with a full stack technology platform. innovations.
OYO is a single-stop digital platform that engages customers and high-quality storefronts of hospitality services at a highly competitive price.
The company offers high-quality storefronts at an affordable price that maintains a cut edge over its counterparts.
The ultimate motive of the company is to ensure visitors have a comfortable short-stay accommodation space in specific destinations across India.
The company has expanded in areas of co-working spaces, luxury hotel bookings, vacation homes, and corporate travel, and the list is building up.
Besides India, the company has collaborated with short-stay spaces in Indonesia, Malaysia, China, and Europe.
OYO IPO: Check Issue Date, Issue Price, Lot Size & Financials
The entire article concentrates on the OYO IPO issue, business model, strengths/risks, pricing, business revenue, financial status ( revenue, total assets, profits), customer benefits, and loyalty rewards.
OYO is one of the most awaited upcoming IPOs of 2023 in the Indian Stock Market.
OYO IPO Issue:
The company plans to reach the general public for capital investment through IPO shares listed on BSE and NSE. Link Intime Private Limited is the registrar of the OYO company, often referred to as Oravel Stays.
OYO IPO issue is a combination of a fresh issue worth INR 7,000.00 crores and an offer for sale of INR 1,430 crores. The open and close dates of the OYO IPO are yet to be released.
One can find a delay in the launching of the IPO which is extended to the next financial year due to the volatile market conditions. It had to settle at a lower valuation of USD 7-8 billion but was targeted for a figure of USD 11 billion otherwise.
OYO Financial Status:
The OYO financial status in terms of the revenue, total assets, and profit when accounted for three years, 2019, 2020, and 2021 are as follows.
|Revenue||6518 Cr.||13413 Cr.||4157 Cr.|
|Total Assets||11743 Cr.||14109 Cr.||8751 Cr.|
|Profits||2294 Cr.||11080 Cr.||4102 Cr.|
- Under the current operating conditions, the company estimates to make revenue up by 19 percent (USD 751 million) when compared to FY2022 at USD 629 million.
- During the first half of the fiscal year 22, OYO made an adjustment towards EBITDA of USD 8.3 million and it has registered an adjusted EBITDA loss of USD plus 37 million.
- In the second half of fiscal year 22, the company seems to witness favorable conditions with businesses coupled and thereby making a marginal expansion. The company’s agile operating leverages are likely to project USD 24 million, an adjusted EBITA.
- In the third quarter of FY 2022-23, OYO had a record booking of 4.5 lakh-plus on New Year’s Eve. The statistics reveal that it is the highest bookings per hotel, per day for 5 years.
- The company is said to observe impressive growth in the monthly revenue per hotel, often referred to as Gross Booking Value ( GBV).
- The company has opted for a wider operation and now a traveler can book vacation homes, corporate travel, co-working space, premium luxury hotels, and other relevant segments.
- The business operations have entered China, Malaysia, Indonesia, and Europe.
- With an increase in business operations, OYO mobile travel app converges customers to OYO rooms and stood in the third position for the year 2020.
The company is solely driven by its Managing Director Ritesh Agarwal and if he backs out from the OYO then it may sense a negative trend.
OYO Room Business Model:
At a glance, one can understand that OYO Rooms is a technology-driven platform and here, the hotel, property owners, and customers meet.
The company provides visibility of all properties and hotels to customs on a single platform.
The company allows storefronts on the technology platform and it hardly incurs an expenditure in building space for storefronts.
OYO Rooms provide revenue management and business management services to their customers and for that, the company hosts two specific apps and they are Co-OYO and OYO OS. These apps explain to the storefronts what price to be fixed on products and services to obtain maximum revenue. Such suggestions and recommendations are rendered to the storefronts by deploying machine learning and artificial intelligence tools.
OYO provides service to Storefronts for business and revenue management. For this, it has 2 apps- Co-OYO and OYO OS. Through machine learning and artificial intelligence, they tell the Storefronts what price to keep to maximize revenue.
To attract the customers on OYO platform, the company conducts rigorous marketing and obtains a strong image. By making the services available to the customers at an affordable price, about 70 percent of the bookings on OYO happen instantly.
OYO Storefront Services:
In addition, OYO enables storefronts to monitor their digital performance and facilitate payments.
The company provides digital marketing support to storefronts, enabling them to present the best photography of hotels, properties, and images.
OYO Business Pricing:
OYO ensures the best services and to list on the digital platform it collects a nominal amount. In fact, it charges 20-35 percent on the gross booking value from hotels and properties.
A storefront can get listed on the platform without the mentioned services at a fixed fee.
OYO Loyalty Programme:
OYO promotes the loyalty program, India’s second largest one, known to be OYO Wizards. The program participants receive discounts and rewards, and till date, at least 9.2 million customers have sought the benefit.
Customers utilize OYO Wizards to book OYO rooms and it is observed that 71 percent of bookings happen in this manner. Therefore, it reflects the strength of the rewards/loyalty program.