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Branded budget hotels marketplace OYO Rooms, owned and operated by Delhi-based Oravel Stays Pvt. Ltd, saw its losses widen to a whopping Rs 496 crore in the year 2016. This is almost 25 times more than what it posted in the previous year.
The Softbank-backed room aggregator, which competes with the startups such as Treebo and FabHotels, also saw its expenses increasing by 16 times to Rs 520 crore in that period from a about Rs 32 crore in the year 2015, according to the RoC filings that was assessed on business research platform Tofler.
As per the documents on Tofler, the company, which raised about $225 million from the Japanese Internet giant SoftBank Group early this year, had earned Rs 32 crore in annual income. It was Rs 2 crore in 2015.
The company has mentioned in the financials that the business has expanded significantly in 2016 and had reached to 200 cities with 7,000 hotel partners.
“The value gross bookings have grown exponentially by 29 times during the financial year 2016 and that mobile app, which was launched in 2015, contributed to over 41 per cent of the total bookings,” the filings added.
Oyo Rooms, founded by a then 21year -old Ritesh Agarwal in 2011, is being touted as the investors in the start-up ecosystem as SoftBank’s dark horse. The company has expanded to 7000 hotels from a mere 11, in the last three-four years.
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