Hospitality major OYO said that it has turned cash flow positive in the fourth quarter of FY 2023 in an internal note to employees, according to sources close to the development, who spoke to businessline on the condition of anonymity.

The company expects to end the quarter with nearly ₹90 crore surplus cash flow. Ritesh Agarwal, Founder & Group CEO of, OYO also recently revealed in an employee townhall that OYO have marked their first financial year of adjusted EBITDA profitability in FY2023 and are expected to clock adjusted EBITDA of nearly ₹800 cr for FY2024. 

Increase in bookings

“This can be attributed to an increase in bookings across all key geographies, but especially in the Europe homes business that is witnessing unprecedented advance bookings for both for the upcoming summer season peak and even the relatively off-season period from November to March. The cash flows also have a seasonality element. They increase during the European high season when advance bookings peak. Hence the positive cash trajectory is expected to continue into the first quarter of FY 2024,” the source added. 

OYO’s last reported treasury or cash corpus on the balance sheet is around ₹2700cr. 

In March, OYO refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator SEBI under the recently introduced pre-filing route. OYO’s last submission to SEBI, in Nov 2022, was of its updated financial results for the first half of financial year 2022-23, claiming that potential investors need to be made aware of the material uptick in its business performance since its initial IPO application in September 2021.

OYO had reported its maiden positive adjusted EBITDA of ₹63 cr, a 24 per cent year-on-year increase in revenue and 69 per cent increase in monthly booking value (GBV per month) for its hotels in H1 FY2023.

Premium hotels

OYO had filed preliminary documents with the SEBI on September 2021 for a ₹8,430 crore IPO, including a fresh issue of equity shares aggregating up to ₹7,000 crore and an offer for sale of ₹1,430 crore. The company recently announced that it plans to double the number of premium hotels such as Townhouse Oak, OYO Townhouse, Collection O and Capital O in India in 2023 by adding approximately 1,800 premium hotels. 

OYO’s focus on premium hotels started in the last quarter of 2022 when it added more than 400 new premium hotels between October to December. The company also launched an accelerator program for first-generation hoteliers with more than five operational hotels on its platform. This program is devised to encourage hoteliers to accelerate their hotel portfolio expansion.

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