OYO, a unicorn company that became the world’s largest hotel chain by connecting small budget hotels, has reported its highest profit ever. This news comes as the company prepares to enter the stock market with its IPO.

OYO, founded by Ritesh Agarwal, has announced that it earned a profit of ₹229 crore for the fiscal year 2023-24. This is the company’s first time making such a large profit. The announcement comes just as OYO is getting ready to launch its IPO soon.

The company’s performance exceeded expectations. OYO had anticipated a profit of ₹100 crore for the year. Ritesh Agarwal expressed his satisfaction with the results, stating, “In recent years, I have learned the importance of doing more and speaking less. Our audited results, approved by the board, show a net profit of ₹229 crore, which is higher than our previous estimate of ₹100 crore.”

OYO’s revenue before tax grew by 215% to approximately ₹877 crore in 2023-24, compared to about ₹277 crore in 2022-23. The company also reduced its expenses by around 13%, bringing the cost down to ₹4,500 crore from ₹5,207 crore the previous year.

During the fiscal year 2023-24, OYO added many new hotels to its network and improved its business performance. Increased travel has led to higher demand, contributing to the company’s substantial profit.

OYO already has the largest network of budget hotels worldwide. Recently, OYO acquired France-based K&J Consulting, which manages the premium rental home company Checkmigust Group in Europe.

OYO had announced its IPO nearly two years ago but has not yet launched it due to market conditions. The IPO is expected to come this year, with a projected size of ₹8,430 crore. This includes a new issue of ₹7,000 crore and a sale offer of ₹1,430 crore.