Oyo has reported a 172% increase in net profit for the fiscal year 2025, reaching 623 crore rupees (US$72.6 million).

This was mentioned during a townhall meeting by founder and CEO Ritesh Agarwal.

This is a significant rise from the 229 crore rupees (US$26.6 million) recorded in FY24.

The company’s revenue grew by 20% to 6,463 crore rupees (US$753.188) in FY25, up from 5,388 crore rupees (US$628.000) the previous year.

OYO also reported a 54% year-on-year increase in gross booking value, totaling 16,436 crore rupees (US$1.9 million).

The company has not yet released a formal public statement regarding these figures.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ The remarkable transformation from deep losses to market-leading profitability

OYO’s journey from substantial losses to becoming “the most profitable startup in India” illustrates one of the most dramatic turnarounds in India’s startup ecosystem.

In FY19, OYO reported losses of $335 million despite 350% revenue growth to $951 million, demonstrating how its aggressive expansion prioritized scale over profitability 1.

This trend continued with reported losses of ₹3,943.8 crore in FY21, following a staggering ₹13,122.8 crore loss in FY20, as the company weathered both rapid expansion costs and pandemic disruptions 2.

The company’s financial discipline began showing results in FY24 with its first-ever annual profit of ₹100 crore, after eight consecutive quarters of profitability, compared to a ₹1,000 crore loss in FY23 3.

OYO’s refinancing of $660 million in debt saved approximately ₹124-141 crore annually, while cost-cutting reduced operating expenses from 19% to 14% of revenue, contributing directly to its profitability transformation 3.

2️⃣ Strategic business model evolution driving sustainable growth

OYO’s profitability reflects a fundamental shift in its business approach, moving from a growth-at-all-costs strategy to one focused on sustainable unit economics and premium offerings.