OYO India business EBITDA positive; company on path of resurgence: Ritesh Agarwal
March 18, 2021, Updated on : Mon May 10 2021 08:12:01 GMT+0000
Hospitality firmIndia business is now EBITDA positive and the company is earning the same gross profits globally in dollars since January 2021 as it did in the pre-COVID period, Founder and Group CEO Ritesh Agarwal told employees in an e-mail on Wednesday.
"OYO is on a steady path of resurgence in 2021 and we are seeing signs of recovery across India, Europe, and Southeast Asia. OYO's survival through the COVID crisis and our resurgence show that we are a company with strong fundamentals and high value potential," the e-mail accessed by PTI says.
OYO earned the same money since January 2021 as it did in the pre-COVID period. This is a very big achievement and demonstrates demand recovery and results of a revenue-share-only-network, Ritesh said.
"We expect gross profits to get stronger in 2021 as restrictions and lockdowns ease as well as vaccination coverage increases."
India business is EBITDA positive. It has achieved EBITDA break-even from December 2020 and is growing month-on-month.
India is the second market, after OYO Europe Homes, that has achieved profitability and with these two largest markets financially sustainable, they are clear examples of the success of our business model at scale, he added.
OYO is empowering over 100,000 small hotel and home entrepreneurs who own and operate hotels with an industry-first technology platform that yields higher revenue growth, Ritesh said.
In his mail, he also said that in 2021, OYO has now recategorised the organisation under three large geographies -- OYO INSEA (India, Indonesia, Malaysia and Philippines), OYO Europe, and OYO International (USA, UK, China, and others).
Rohit Kapoor will now be CEO of OYO INSEA, Mandar Vaidya will be CEO of OYO Europe, and Gautam Swaroop will be the CEO, OYO International, Ritesh added.
Edited by Teja Lele