A public listing is back on the cards for OYO as the company reports its first EBITDA positive quarter since its founding in 2013.
In an addendum to its Draft Red Herring Prospectus, initially filed with the stock exchange of India SEBI just under a year ago, the company is reporting adjusted EBITDA of approximately $1 million for the first quarter of fiscal 2023 - the period of April through June of this year.
OYO says the result was driven by an increase in gross booking value in line with travel recovery, alongside improved unit economics.
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According to Bloomberg, OYO is now intending the IPO to happen in early 2023.
The company says: “The performance in the ongoing quarter seems to indicate another EBIDTA positive quarter. OYO may be able to generate positive free cash flow by the end of this fiscal if the revenue growth continues at the same or higher pace and the control on costs that OYO has been able to achieve continues.”
It adds that its key markets of India, Northern Europe, Indonesia and Malaysia will “need to perform” to achieve that result.
OYO also says that its presence in core markets such as India and South Asia helped its financial improvement in the past quarter.
It points to developments such as its “pay at hotel” feature and pre-pay functionality have widened its appeal.
OYO has also made some progress in Europe recent months announcing its acquisition of Croatia-based Direct booker in May followed by the acquisition of Danish vacation rental operator Bornholmske Feriehuse in August.