Oravel Stays Limited, operator of hospitality brand Oyo Rooms which has a network of budget hotels, reported a 54% year-on-year decline in revenue for fiscal 2020-21 to ₹89 crore.
The company reported a net loss of ₹241 crore during the fiscal, lower than ₹326 crore in FY20.
As per information filed with the Registrar of Companies, Ministry of Corporate Affairs, Oravel Stays’ operating revenue in FY21 was down to ₹11.81 crore from ₹36.29 crore a year ago. In 2018-19, its operating revenue stood at ₹35.95 crore. The data was accessed via business intelligence platform Tofler.
On 1 October, the hotel-booking startup filed draft red herring prospectus with market regulator Securities and Exchange Board of India (Sebi) for a ₹ 8,430 crore ($1.1 billion) initial public offering (IPO).
The initial share sale comprises fresh issue of equity shares aggregating up to ₹7,000 crore and offer for sale to the tune of ₹1,430 crore.
In the past, Oyo rooms has been accused of using predatory pricing and not following through on its pre-signed agreements. The company has also been accused of unilaterally changing rules for partner hotels and threats of legal action for declining bookings.