OYO IPO

Strengths

• ✓Largest footprint in terms of hotel storefronts in India and SEA
• ✓Second largest footprint in Europe in terms of home storefronts among full stack short-stay accommodation players, according to RedSeer.
• ✓Asset-light business model and a lean cost structure - the company does not own the storefronts listed on its platform
• ✓Full-stack technology platform
• ✓Two flagship Patron applications - Co-OYO and OYO OS
• ✓An increase in Patron satisfaction score from 30.1% for the three months ended September 30, 2020 to 72.3% for the three months ended March 31, 2021
• ✓Unit economics, measured based on Contribution Profit, has improved from 5.1% in Fiscal 2020 to 18.4% in Fiscal 2021
• ✓The proportion of hotel and home storefronts with minimum guarantees or fixed payout commitments from the company has decreased from 14.7% in Fiscal 2019 to 0.1% in Fiscal 2021.

Risks

• !Impact of the Covid-19 pandemic on the travel industry.
• !Negative cash flows from operating activities in prior years.
• !Company has incurred net losses in each year since incorporation.
• !A substantial amount of debt in the past
• !No control over or ability to predict the actions of our patrons, customers and other third parties, such as neighbors or invitees, during a customer’s stay
• !Any adverse outcome in legal proceedings involving Zostel may affect the business.
• !The company is currently involved in a matter before the Competition Commission of India.
• !There is a pending litigation against the company, certain subsidiaries and directors and promoters.

About OYO

OYO is a leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem. It has been focusing on the short-stay accommodation space since 2012. Its unique business model helps its patrons transform fragmented, unbranded, and underutilized hospitality assets into branded, digitally-enabled storefronts with higher revenue generation potential. OYO provides its customers with high-quality storefronts at compelling price points.