Akshata Sharma
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OYO reported its first full year of profitability in FY24, posting a net profit of about INR 100 Cr - a big turnaround from the INR 1,000 Cr net loss in FY23. So what really worked out for OYO in FY24?
* In FY23, the company shed a lot of its inventory of rooms and culled its low-performing, low-customer experience hotels to focus on profitability - its hotel count decreased from 12,000 to 8,000.
* Following this, the company increased the number of hotel partners in FY24.
* OYO zeroed in on some properties to onboard them and improve visibility and also launched new brands. For instance, in April 2024, OYO launched a joint venture with lead investor SoftBank under the luxury hotel chain brand 'Sunday'.
* A sharp focus on spiritual and sports tourism as well as premium hotel bookings helped OYO turn things around and reach profitability according to multiple sources that Inc42 spoke to.
* Sources close to OYO also claim the company has scaled down overseas from 80 geographies to 35 today. This means a bigger focus on the markets that are bringing in revenue and where the company does not have to go up against big competition.
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