This article was compiled from The Indian Business Journal
Oyo Rooms, a local Indian hotel chain operator backed by SoftBank (also known as Oyo Homes & Hotels) Annual report. Data show that the company’s loss amounted to US $ 335 million, compared with a loss of US $ 52 million in the previous year. The current year’s loss was six times that of last year. OYO said that the main reason for the loss was the increase in operating costs and the increase in costs caused by its large-scale expansion in multiple markets around the world.
These numbers are in line with the company’s “Interim Financial Report” submitted to the Indian Companies Registry last November.
However, the financial statements of this Gurgaon-based company are not all bad news: the company’s 2018 revenue reached $ 951 million, more than four times the $ 211 million in 2017.
India Asia News Agency quoted the company ’s statement as saying, “Inherent costs required to establish a new market, including but not limited to operating expenses, talent introduction, necessary expenses related to market access, etc. are OYO ’s recent net expenses. The main reason for the increased loss, which also caused its loss to 25% of total revenue in 2017 to increase to 35% in 2018.
The financial report of this start-up company established six years ago by Lee Tae Hee (Ritesh Agarwal) shows that the losses in China and other overseas markets are USD 252 million, accounting for 75% of the total loss for the 2018-2019 fiscal year. In India’s domestic market, losses have fallen by 14% compared to the previous year. Net loss in Indian market accounted for total revenue in fiscal 2017