Oyo rejigs management ahead of IPO

Oyo rejigs management ahead of IPO

Hotel and hospitality chain Oyo has undergone a management rejig as it prepares to re-file its draft red herring prospectus (DRHP) with the capital markets regulator for its IPO, people aware of the developments told FE.

Most of those who have been with the company for over six years, like Abhinav Sinha, who is currently the global COO and has also led the product division, will now be handed over the role of chief product and technology officer, as the two units merge. He will replace current CTO Ankit Mathuria, who is set to depart the startup in June.

Shreerang Godbole, who joined Oyo in 2014 and was recently elevated to the role of chief service officer, has been given additional charge of the data science division.

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Gautam Swaroop, who is currently CEO-International, will also take over Weddingz, Oyo’s wedding organising arm, one person cited above said.

Oyo did not respond to FE’s queries till time of going to press on Friday.

The startup expects its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the second half of the current fiscal to be at Rs 182 crore. Since the company had reported an adjusted Ebitda of Rs 63 crore during the first half, FY23 would be the first year since its inception in 2013 when it would report profitability on the basis of adjusted Ebitda. For the full year, Oyo’s adjusted Ebitda is expected to be Rs 245 crore. The company announced the same at a town hall meeting of employees recently.

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Oyo’s revenues during FY23 are expected to grow by 19% to Rs 5,708 crore on the back of cost cuts, improvement in operational efficiencies and expansion of its hotels business, among others. The travel-tech startup was supposed to file its DRHP with the Securities and Exchange Board of India by mid-February but is yet to update on the progress.