Unlisted Shares

OYO - A global platform that equips entrepreneurs and small businesses with comprehensive technology, enhancing income and simplifying operations. It provides affordable and reliable accommodations for instant guest bookings.

The world's second-largest hotel chain, rapidly expanding across 35 countries with 157,000+ accommodations and a substantial customer base, is South Asia's largest hotel chain.

Revenue Growth - The revenue surged by 14.18% due to the travel industry's rebound after COVID-19, driven by increased domestic and international revenue by Rs. 244cr & Rs. 438 cr, respectively.

Key Stakeholders - Dr. Deepa Malik(Padma Shri, Khel Ratna India’s first-ever female Paralympic medalist), and Ritesh Agarwal, OYO's founder (the youngest Shark of Shark Tank India Season 3), bring prestige to the company. Notably, its key investors are Peak XV Partners, Lightspeed Venture Partners, and SoftBank.

Ratio Analysis- The company's high D/E (5.1) signifies liquidity issues and is associated with cumulative equity losses. Also, declining current ratio, increased leverage, and negative ROE raise financial worries.

Shares Count -  As of March 31, 2024, the balance sheet shows a total of 1,328,123,967 equity shares. Additionally, the number of fully convertible preference shares, including the recent funding rounds, equals to 5,231,976,975 shares.

Thesis - Recently, the company withdrew its draft IPO papers for the second time, which were initially filed in March 2023. Now, the company is negotiating with investors for a new funding round at a potential valuation as low as US$2.3 bn, a significant decline of over 74% from its peak valuation of US$9 bn during a 2021 funding round with Microsoft, according to multiple sources. Additionally, the current offer (CCCPS Series G) made to InCred Wealth values the intrinsic worth at Rs. 29.



Despite this, the company has posted its maiden annual net profit of ₹100 cr in FY24, and Fitch has enhanced the company's rating following their financial results. However, investors are advised to exercise caution when reviewing this stock.