Oyo reports dismal numbers for losses in 2019 fiscal year

Oyo, even with experiencing layoffs across multiple markets internationally, and as it continues to struggle to control costs, has reported that its losses in its India market had lowered to $83 million for the 2019 fiscal year.

Oyo Hotels & Homes reported a consolidated loss of $335 million for the year ended March 2019 compared with a year-earlier $52 million loss as the SoftBank-backed company struggled with ballooning operational spends while expanding at a rapid pace across multiple geographies.

This is in line with the numbers provided in a valuation report filed by the Gurugram-headquartered company with the Registrar of Companies in November last year. Oyo attributed the significant jump in its consolidated losses to “inherent costs of establishing new markets” and international expansion, especially in areas such as China.

The company reported consolidated revenue of $951 million, up from $211 million in the previous fiscal, while India revenue was $604 million. Oyo, which is laying off staff across the globe including India as it struggles to rein in costs, said losses in its home market went up to $83 million in FY19 from $50 million in FY18.

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At $197 million, China accounted for almost 60% of the company’s loss in FY19.

Operating expenses for the 12-month period rose almost five-fold to $1.27 billion from the year earlier. The company said India accounted for 63.5% of overall revenue with nearly 36.5%, or $348 million, being contributed by the operations outside the country, primarily China.

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