🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Unpacking Oyo profitability and its financial position in FY24

EntrackrEntrackr · 11m ago
Unpacking Oyo profitability and its financial position in FY24
Medial

IPO bound Hospitality firm Oyo reported steady revenues during the fiscal year ending March 2024, but the SoftBank-backed company made a turnaround as far as bottomline is concerned. Oyo has posted Rs 230 crore profit in the last fiscal year as compared to Rs 1,286 crore losses in FY23. Oyo’s revenue from operations declined 1.4% to Rs 5,389 crore in FY24 from Rs 5,464 crore in FY23, its consolidated annual report shows. Income from the sale of accommodation services formed 63.8% of the total operating revenue which decreased by 7.3% to Rs 3,441 crore in FY24. Income from commission and bookings brought Rs 1,344 crore to the firm’s coffers. The sale of tour packages, events, cancellation income, and insurance services fees were other revenue drivers for Oyo. The Gurugram-based company also made Rs 153 crore from interest on fixed deposits and gain in foreign exchange difference which took its overall revenue to Rs 5,542 crore in FY24 from Rs 5,602 crore in FY23. See TheKredible for the detailed revenue breakup The cost of its lease rental and service component lease accounted for 50% of its overall cost which declined 8% to Rs 2,885 crore in FY24. This payment was made to hotel owners that includes lease rent and services such as housekeeping, electricity, and maintenance among others. The company’s burn on salaries and other employee benefit schemes nosedived 52% to Rs 744 crore in FY24, primarily due to a reduction in ESOP costs, which fell to Rs 107 crore in FY24 from Rs 363 crore in FY23. Oyo paid Rs 844 crore (around $100 million) in interest during FY24 on the $660 million term loan it secured from various lenders in FY22. Its advertising, commissions, brokerage, legal, IT, and other overheads catalyzed its total expenditure to Rs 5,726 crore in FY24. See TheKredible for the complete expense breakdown Despite the flat revenue, Oyo’s cost-control approach and Rs 453 crore income from exceptional items (mostly a fair value gain of Rs 240 crore on the acquisition of OYO Hotels Cayman and Reversal of financial liability of Rs 249 crore) led Oyo to turn profitable with Rs 239 crore in FY24 as compared to a loss of Rs 1,286 crore in FY23. FY23-FY24 FY23 FY24 EBITDA Margin -4.23% 15.52% Expense/₹ of Op Revenue ₹1.24 ₹1.06 ROCE -8.60% 13.40% With the improved bottom line, Oyo’s ROCE rose to 13.4%, and EBITDA to 15.5%. On a unit level, it spent Rs 1.06 to earn a rupee in FY24. Meanwhile, Oyo has managed to raise $175 million in two tranches of which $100 million was pumped in by the company’s founder Ritesh Agarwal.

1

Related News

Unpacking VerSe’s Josh: growth, monetization and future roadmap

EntrackrEntrackr · 9m ago
Unpacking VerSe’s Josh: growth, monetization and future roadmap
Medial

The short video entertainment space has seen consolidation with the merger of MX TakaTak, the pivot of Chingari, and the shutdown of Mitron TV. This has left the fledgling market with two main players: ShareChat’s Moj and VerSe’s Josh. While Moj’s parent company, ShareChat, has been struggling to scale its short video offering and secure follow-on funding, Josh remains well-capitalized and holds a leading position in the segment with approximately 180 million active users. “We have a monthly active user base of 179 million, along with 91 million daily active users,” said a Josh spokesperson in an interaction with Entrackr. “By the end of FY24, we had over 150 million downloads via playstore.” Josh is available in 12 Indian languages and reports that over 80% of its content is viewed in local dialects. This feature is particularly crucial as more than two-thirds of its users are from tier II and III cities such as Bhubaneswar, Jaipur, Patna, and Raipur. OEM partnership: Key to Josh’s growth Josh’s DAU and MAU numbers appear staggering, but they don’t align with data from app trackers like App Annie and Appflyer. “These trackers are irrelevant in our case, as majority of our downloads come from pre-installed mobile phones,” the spokesperson clarified. Josh has secured more than two-thirds of its downloads through partnerships with smartphone manufacturers such as Vivo, Oppo, Xiaomi, and Samsung, among others. Creator-centric approach driving Josh’s topline The success of a short-video app largely depends on its creators and the ecosystem surrounding them. Josh has a community of over 100,000 creators and partnerships with 14 leading music labels. “Our monthly active creator base increased by 34% year-on-year, reaching 71 million in FY24,” added the spokesperson. Collaboration is a key focus for Josh, which launched Collab to tap into the influencer ecosystem. “Collab is designed to help brands discover influencers and engage with them seamlessly, without any friction,” said the spokesperson. After prioritizing traction for two and half years (September 2020 to mid 2023), Josh began monetization by opening the platform to brands for campaigns in the second half of 2023. Currently, Josh offers a range of advertising solutions which include diverse formats such as video ads, influencer-brand collaborations and influencer and content-led IPs. “Josh helps businesses in brand building, lead generation, user engagement, and creating overall awareness,” added the spokesperson. The platform has worked with 450 brands, including Amazon, Myntra, Nykaa, Xiaomi, since July last year. Around one-third of Josh’s user base was from tier 1 cities while 68% hailed from tier II and III cities. The popularity of short videos is 2X higher in tier II and III cities. Brands with a national presence who are looking to strengthen their brand recall in tier II markets and regional languages prefer Josh. While Josh didn’t give exact revenue numbers, it reported hitting an average revenue run rate of Rs 300 crore this quarter. “Our target is to achieve break even by the first half of 2025,” said the spokesperson. Live commerce/audio, audio stories to oil monetization roadmap In addition to tapping into the influencer ecosystem, Josh is exploring new formats such as brand shoppable commerce, live commerce, live audio, gifting and audio stories. As per the firm, these efforts aim to position Josh for revenue generation and profitability as it deepens its monetization road. The live audio feature on Josh enables users to have real-time conversations with specialised creators. Users initiating live audio calls pay per minute using Josh’s in-app currency, “Jems,” while creators earn “Diamonds,” redeemable in the Indian currency. Audio stories, particularly in regional languages, are also gaining traction. Josh offers subscription-based and micro-payments for specific content from partners like Velvet, Eight, and EarShot, viewing this as a substantial long-term opportunity. Josh has leadership in the Bharat-focused short video entertainment space and is actively working to demonstrate its platform’s ability to deliver real results and fulfil its promises to buyers. Josh’s strategic decision to remain closed to advertising until 2023 reflects its focus on building a robust user base and platform. With its recent monetization efforts, Josh is well positioned to address the market gap left by TikTok in India.

Download the medial app to read full posts, comements and news.