Hospitality and travel-tech firm OYO estimates its revenue in the fiscal year (FY23) to be more than Rs 5,700 crore, up 19 per cent from the Rs 4,780 crore it had recorded in FY22, according to its founder and group chief executive officer (CEO) Ritesh Agarwal. 

At a town hall on Monday, Agarwal told employees of the firm that OYO is aspiring to reach an adjusted  Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of nearly Rs 800 crore in the next financial year.

Sustained growth in India, Indonesia, the US and the UK and relevant optimisation, as well as synergies in its European vacation homes business, have led to better financials of the company, he said in a presentation at the gathering with employees. In the presentation, Agarwal said OYO's revenue for FY2023 is expected to be over Rs 5,700 crore, up around 19 per cent from the Rs 4,780 crore achieved in FY2022.

Agarwal outlined that the key focus areas of OYO in the calendar year 2023 will be on Profit After Tax (PAT) along with consistent momentum in EBITDA; achieving cash flow positive in FY24; cost efficiency and improving contribution margins and making storefront additions, among others.

He said the company is expected to close FY23 with more than 1.72 lakh storefronts, as compared to 1.69 lakh in FY22, a growth of nearly 2 per cent. 

When contacted, an OYO spokesperson declined to comment.

Agarwal told the employees that OYO has a current cash balance of Rs 2,700 crore and the company hoped it would end up consuming very little of it for existing operations. With an improvement in cash flow, OYO's reliance on external funds has also gradually decreased over time, he added.

The company reported an adjusted EBITDA of Rs 63 crore in the first half of FY2023 in its filing with the Securities and Exchange Board of India (Sebi) in an update to its Draft Red Herring Prospectus (DRHP).

In January, OYO was asked by Sebi to refile the draft IPO (Initial Public Offering) papers with certain updates. In September 2021, OYO filed preliminary documents with Sebi for Rs 8,430 crore IPO.

The IPO was delayed due to the then volatile market conditions making the company prepare to settle for a lower valuation at around USD 7-8 billion instead of the USD 11 billion it was targeting initially.