“There's no greater gift than thinking that you had some impact on the world, for the better.”
– Gloria Steinem
New numbers, old OYO
OYO is still far from positive unit economics in India and unlikely to get closer to profitability
Its 2019 financials make for dire reading—its net loss increased 7X
OYO's topline operating revenue number of $581 million and gross margin of 14.7% seem impressive, but are misleading
With nearly 75% of its losses stemming from its China business, OYO faces a tough road ahead
OYO is currently the most important startup in India, if not the world.
Hyperbole?
Maybe not.
For one thing, the budget hospitality startup is currently the great white hope for SoftBank and its $100 billion Vision Fund, the biggest and most influential VC in the world. If SoftBank’s “crown jewel” turns out to be a lump of coal, the fund can all but kiss its chances of raising the second Vision Fund—which is already struggling to get off the ground—goodbye.
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