The report added that Oyo has begun talks with several investors to raise cash in the next six to eight months.
The company had first filed the draft papers for an IPO in October 2021 and Sebi had returned them in January 2023, asking Oyo to refile them with revisions. The revised draft, filed in April 2023, was 40-60 per cent smaller than the original proposal of $1.2 billion. However, its IPO plans have not reached a conclusion yet.
The company is also facing valuation cuts. SoftBank, which owns around 46 per cent of the company, had in 2022 slashed its valuation to $2.7 billion from $3.4 billion earlier.
“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience, and favourable market conditions conducive to sustained growth,” Agarwal told the employees.
He also informed the staff that the company clocked an adjusted EBITDA of Rs 750 crore in FY23 and expects to clock an adjusted EBITDA of Rs 1,000 crore in FY24, surpassing its earlier projection of Rs 800 crore for FY24.
Last year OYO had prepaid Rs 1,620 crore debt through a buyback process that involved the repurchase of 30 per cent of the company’s outstanding Term Loan B (TLB).
Earlier, Agarwal had shared with employees that the company had turned cash flow positive in the fourth quarter of FY23.
(With agency inputs)
First Published: Feb 14 2024 | 10:21 AM IST