CEO of OYO India, and South Asia, Rohit Kapoor, took to Twitter on Monday to publicly announce the results of the annual report for the FY 2019.
OYO, in the recent past, has struggled at a number of hurdles, such as falling out of favour in the hotel industry, and breaking ties with over 200 hotels, according to The Federation of Hotel and Restaurant Association of India. Moreover, poor customer service and refund policies forced many disgruntled customers to voice their disapproval on social media, further the brand’s image.
#oyorooms do it again. I booked a hotel at 11pm in Goa before boarding, paid amount, called and confirmed with the property, only to find out after that the booking was cancelled. Not only, I was stranded in another city airport at 2am in the morning. Worst experience ever.
— Jyoti Pannu (@jyoti_pannu_13) February 16, 2020
The FY 2019 Annual Report however, seems to promise greener pastures. The company’s revenue increased over 4-fold as compared to FY 2018, while its gross margin in India rose from 10.6% to 14.7% in the same period. Though the company is still recording net losses, the same decreased by 10%. OYO charted amongst the top 3 hotel booking apps globally. While customer satisfaction has seemed to be an issue for the brand, FY 2019 showed that an average of 73% of its customers over the four quarters have been repeat clients.
Honored to share that OYO’s gross margin in India increased from 10.6% to 14.7% in FY19. Net losses also reduced from 24% to 14%, which testify the team's hard work & customers’ and asset partners’ continued trust in us. Read our Annual Report FY19 here: https://t.co/QQ7ragmfi0
— Rohit Kapoor (@rohitisb) February 17, 2020
Founder Ritesh Agarwal conceded that while the company’s consolidated losses may have ballooned from $44 Million to $335 Million, in the past year, it is still focused on “building a sustainable business”, focused on customer satisfaction.
OYO CFO today shared that while our consolidated losses widened, India net loss improved. We are focused on building a sustainable business by improving customer experience, partner services & OYOpreneur engagement, committed for the long term. Read here: https://t.co/3LubG9jbru
— Ritesh Agarwal (@riteshagar) February 17, 2020
