Oyo, the budget-lodging startup has reported a loss of $335 million on $951 million revenue globally for its financial year ending on 31st March 2019, also it pledged to cut down on spending since Indian-headquartered firm is cautious about the aggressive expansion.
Abhishek Gupta, the Global CFO of the OYO Hotels & Homes, in his statement said that the six years old startup had its growing revenue of $211 million in the financial year ending on 31st March, and it was in line with the ambitions of the company to be in a clear way to bring profit that year.
However, the loss of that startup has widened as well. The loss was around $335 million in the financial year 2019, which was $52 million in the financial year 2018. In India, where Oyo had clocked $604 million in the revenue in the financial year 2019, it could reduce the loss to 14% from 24%.
Indian laws require every local startup, and international business to disclose their annual financials. Most of those companies filed their financials earlier in October.
The startup currently operates over 43,000 hotels with more than a million rooms across 800 cities in 80 nations, and it has also disclosed the expansion in China and other international markets. In 2018, Oyo entered in China and expanded the market as the 2nd largest.
In 2019, Oyo also expanded the market in the United States and Europe and brought Leisure Group from Axel Springer for $415 million to target the vacation rental market of Europe. Also, Oyo announced the plans to invest another $335 million for that effort. Later, it also entered Japan with a partnership with SoftBank.