In brief: Oyo’s losses widen, but CEO says it’s on track to turn a profit

• Budget hotel startup Oyo has cut its estimated net loss to a tenth of overall sales over the past 12 months, according to CEO Aditya Ghosh.
• However, the company’s net loss is estimated to have widened to 512 million rupees (US$7.43 million) from 360 million rupees (US$5.22 million) one year ago.
• “We [also] halved the net loss [as a proportion of overall sales] in the previous financial year. If this trajectory continues, in the not so distant future, we will be profitable,” Ghosh said. “But our guidance is that we should be down to 10% [for the year]. We now plan to reposition and relaunch our brands […] by adding more features.”
• Oyo has raised over US$1 billion from its ongoing series E funding round, including a reported US$200 million from Airbnb this week.

Source: Livemint

Currency converted from Indian rupees. Rate: US$1 = INR 68.92