Top News

Hotel room aggregator OYO becomes profitable

SoftBank-backed budget hotel room aggregator OYO Rooms has become profitable operationally at a network level, reported VCCcircle.

SoftBank-backed budget hotel room aggregator OYO Rooms has become profitable operationally at a network level, reported VCCcircle.

The company operated by Gurgaon-based Oravel Stays Pvt. Ltd said that it turned profitable at an aggregate level again from February 2016. It was operationally profitable earlier as well till June 2015 before it went for expansion but now has turned profitability again.

“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,” said Ritesh Agarwal, founder and CEO, OYO Rooms.

He said 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.

In February 2016, OYO Rooms—which is the most-funded budget hotels aggregator in India—had acquired Tiger Global-backed smaller rival Zo Rooms in an all-stock deal. Earlier, it also started operations in Malaysia.

In August, the firm, which operates in 170 cities across the country, had raised $100 million (Rs 635 crore) in a fresh round of funding led by Japanese tech conglomerate SoftBank. In March 2014, it had secured $24 million from a group of investors led by Greenoaks Capital Partners.

 

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close