Oravel Stays Limited (OYO) IPO Company Profile :
Oravel Stays Limited (formerly known as Oravel Stays Private Limited) together with its subsidiaries, and joint ventures primarily engaged in operating technology-enabled branded network franchise of budget Hotels and distributing them through its online and offline distribution channels. Further, Group is also engaged in hotel operation and management activities including the operation of hotels, holiday homes, guest houses, and other accommodations, and technical know-how, training in field of operation, and management of hotels. It also deals in packages, meetings, conferences & events-related activities.
Oravel Stays Limited (OYO) IPO Business Areas:
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Hotels: Hotel storefronts are storefronts where the company acts as a principal in the arrangement for stay services provided to its Customers. GBV from hotels is defined as the amounts payable by Customers for storefront bookings, net of cancellation and gross of discounts, through all of the distribution channels including through the OYO mobile application, website, call centers, OTAs, and other offline channels.
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Homes: Home storefronts are storefronts where the company act as an agent in stay services provided to Customers. GBV from homes is defined as the amounts payable by Customers for storefront bookings, net of cancellation and gross of discounts, through all of the distribution channels including through the OYO mobile application, website, call centers, OTAs, and other offline channels.
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Listings: Listing storefronts are the number of storefronts that the company billed subscription fees to, during the last month of the relevant period. GBV from listings is defined as the amount of subscription fees paid by Patrons from the listing business to the company for listing their storefronts on the company’s platform.
Oravel Stays Limited (OYO) IPO Financial Analysis:
| Particulars | Q1 FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR
FY20-22 |
| Revenue | 1459.31 | 4781.36 | 3961.64 | 13168.15 | -28.7% |
| Operating cost | 853.81 | 2873.82 | 2772.7 | 9737.77 | |
| Gross profit | 605.5 | 1907.54 | 1188.94 | 3430.38 | -17.8% |
| Gross profit margin% | 41.49% | 39.90% | 30.01% | 26.05% | |
| Empl. Cost | 541.17 | 1861.77 | 1742.12 | 4765.28 | |
| Other exp | 313.3 | 1205.64 | 1469.5 | 4827.73 | |
| EBITDA | -248.97 | -1159.87 | -2022.68 | -6162.63 | -42.7% |
| EBITDA margin% | -17.06% | -24.26% | -51.06% | -46.80% | |
| Depreciation | 65.35 | 298.83 | 391.8 | 2728.16 | |
| Interest | 136.94 | 743.94 | 560.93 | 741.92 | |
| Exceptional items | 17.85 | 27.6 | 1001.09 | 1643.93 | |
| PBT | -469.11 | -2230.24 | -3976.50 | -11276.64 | -41.7% |
| Total tax | -1.09 | 22.76 | 67.56 | -42.04 | |
| PAT | -468.02 | -2253 | -4044.1 | -11234.6 | -41.5% |
| Dep./revenue% | 4.48% | 6.25% | 9.89% | 20.72% | |
| Int./revenue% | 9.38% | 15.56% | 14.16% | 5.63% |
Oravel Stays Limited (OYO) IPO Number of storefronts:
| Segment | Q1 FY-23 | % | FY-22 | % | FY-21 | % | FY-20 | % |
| Hotels | 12668 | 7.54 | 17994 | 10.67 | 17820 | 11.33 | 19345 | 12.23 |
| Homes | 77898 | 46.36 | 73177 | 43.39 | 59161 | 37.60 | 52247 | 33.03 |
| Listings | 77446 | 46.10 | 77468 | 45.94 | 80363 | 51.07 | 86584 | 54.74 |
| Total | 168012 | 100.00 | 168639 | 100.00 | 157344 | 100.00 | 158176 | 100.00 |
Oravel Stays Limited (OYO) IPO Gross booking value (GBV):
| Segment | Q1 FY-23 (in cr.) | % | FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % |
| Hotels | 1495.55 | 61.69 | 4610.00 | 58.34 | 3879.83 | 60.22 | 16851.57 | 86.53 |
| Homes | 889.71 | 36.70 | 3140.77 | 39.75 | 2393.04 | 37.14 | 2470.47 | 12.69 |
| Listings | 39.11 | 1.61 | 151.49 | 1.92 | 170.08 | 2.64 | 152.82 | 0.78 |
| Total | 2424 | 100.00 | 7902 | 100.00 | 6443 | 100.00 | 19475 | 100.00 |
Oravel Stays Limited (OYO) IPO Strengths:
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The strength of the company’s brand is well-recognized by both Patrons and Customers in the Core Growth Markets and helps it attract both Patrons and Customers to the platform. OYO was identified as the most valuable Travel and Hospitality brand in India and 30th most valuable brand overall in India by a study conducted by Kantar for 2020
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Company’s technology is the foundation of the business. The Patrons use its robust, full-stack technology platform to grow their revenue, improve Customer experience and optimize their operational costs. The Customers use its mobile applications and websites to access the growing selection of storefronts around the world and to enhance their stay experience through the ancillary services.
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Company has an asset-light business model and a lean cost structure. Company does not own the storefronts listed on the platform. Storefronts on the platform do not have fixed pay-out commitments or minimum guarantees from the company, with investments, capital expenditure and expenses relating to the operation of such storefronts borne solely by the Patrons. This enables the company to be capital-efficient and scale the business with minimal marginal costs.
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Given the scale and reach of the company’s platform in the Core Growth Markets, it is able to leverage data-driven insights to develop a deep understanding of Patrons’ pain points, as well as rapidly evolving Customer preferences. This helps it strengthen the value proposition to the Patrons and Customers.
Oravel Stays Limited (OYO) IPO Risk factors:
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Oravel Stays Limited has incurred net losses each year since incorporation, and the ability to achieve profitability may be delayed. Any decree in the quality of the solutions or offerings, decrease in revenue share percentage, or any failure to manage potential increases in the operating expenses could cause significant delays in the company’s ability to achieve profitability
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If the company fails to retain existing Patrons and Customers or acquire new Patrons and Customers in a cost-effective manner, the revenue may decrease and the business, results of operations, and financial condition could be adversely affected.
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Maintaining and enhancing the brand and reputation is critical to the growth, and negative publicity could damage the brand and thereby harm its ability to compete effectively, and could materially and adversely affect the business, results of operations, and financial conditions of the company.
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Any adverse outcome in legal proceedings involving Zostel may materially and adversely affect the business, reputation, prospects, results of operation and financial condition of the company
Source: Oravel Stays Limited DRAFT RED HERRING PROSPECTUS (DRHP)
GO DIGIT General Insurance Limited IPO FAQ
Ans.Oravel Stays Limited (OYO) IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Oravel Stays Limited (OYO) IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.