Oyo’s Annual Losses Ballooned to $335 Million in 2019
Photo Credit: India and China make up the two biggest markets for Oyo. Skift
Skift Take
Oyo appears to be taking its once-explosive global expansion strategy down a few notches, and that could be a good thing for the young company in the face of still-uncertain impacts from the coronavirus and the reputational damage it recently suffered. These losses aren't pretty.
Losses for Oyo Hotels & Homes surged to $335 million in fiscal year 2019 compared to $50 million in red ink the year before, as the fast-growing budget hotel chain has been forced to pull back on its sweeping global growth strategy.
Overall, the India-based hospitality startup likely posted net revenue of $250-$310 million, according to a Skift Research estimate, in fiscal year 2019, which ended March 31, 2019. That’s an increase of roughly 265 to 350 percent compared with the year-earlier period.
On the other hand, Oyo executives said the company is seeing marked improvement in its business operations in India, deemed a mature market.
India contributed around 64 percent, or $160-$198 million of Oyo’s net rev
