JP Morgan extends Rs 200 crore credit facility to Oyo

JP Morgan has extended a Rs 200 crore credit facility to Oyo. Sources familiar with the matter told ET the primary objective behind this credit line is to fuel the expansion of Oyo's Accelerator Programme. Both Oyo and JP Morgan declined to comment on the matter.

The company launched its Accelerator Programme in March last year with a stated target of supporting 50 first generation hoteliers. Oyo had said its Accelerator Programme was aimed at encouraging and empowering first generation hoteliers to accelerate their hotel portfolio expansion as travel surged in both business and leisure cities.

Oyo's Accelerator Programme currently supports over 700 hotels and over 85 small and first-generation hoteliers from across the country, people familiar with the matter told ET.


Hotel owners with more than five running hotels are eligible to be a part of the Accelerator Programme.

Oyo had previously said that under this programme, it is also helping them achieve 'long-term' profitability and 'increased' earnings by offering them mentorship, access to technology, relationship managers, financial support, and access to Oyo's network of over 15,000 corporate accounts and more than 10,000 travel agents across India boost business prospects.

Oyo’s founder Ritesh Agarwal shared with employees last month that it has doubled its profit after tax (PAT) sequentially in quarter three of financial year 2024 to Rs 30 crore.

The company had marked its maiden profitable quarter with a PAT of over Rs 16 crore in quarter two of this fiscal.

Sources told ET previously that Agarwal said in the town hall that Oyo's net profit is expected to continue rising in the coming quarters. This would be driven by ‘enhanced’ patron confidence, ‘improved’ customer experience, and ‘favourable’ market conditions conducive to sustained growth, he said.
Agarwal also shared that Oyo clocked adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 750 crore in calendar 2023. The company is expected to post adjusted Ebitda of Rs 1,000 crore this financial year, surpassing its earlier projection of Rs 800 crore adjusted Ebitda, he told the employees.

Oyo had previously defined adjusted Ebitda as Ebitda adjusted for transformation expenses made on assets of its hotel partners.

Agarwal said Oyo’s revenue grew by 10% year-on-year in the third quarter. The number of hotels on its platform increased 27% during the quarter to 17,000, he said.

He also told the employees that the company optimised its operating cost by 15% in the third quarter.

Oyo had concluded a debt buyback of Rs 1620 crore in November 2023. The buyback process involved the repurchase of 30% of Oyo's outstanding TLB due in June 2026.

Oyo had said previously that hoteliers who participated in this programme recorded an approximately 20% increase in revenue in three months.