Prism, the parent company of Oyo, is planning an initial public offering (IPO) in India to generate up to INR 6.6 billion ($692 million). This move marks a significant transformation from the company’s profile five years ago, as detailed in its recent annual report.
Strategic Shift to Technology and Control
The report reveals a strategic pivot for Prism, with a substantial focus on integrating technology and gaining greater control over hotel operations. This approach contrasts with its previous marketplace model and is aimed at enhancing its presence in the premium hospitality sector. Notably, India plays a critical role as the technology and operational hub supporting these efforts.
Motel 6 Emerges as Key Contributor
Motel 6 has become pivotal to Prism’s operations, contributing almost half of the group’s gross booking value. This represents a significant shift in the company’s dynamic, underscoring the growing importance of this brand within the Prism portfolio.
Strong Financial Performance
Financially, Prism has shown robust growth. Over the last year, consolidated revenue climbed by 50% to INR 94 billion ($980 million), while EBITDA surged by over double to reach INR 26 billion ($272 million). Additionally, the profit after tax reached INR 10 billion ($105 million), and the gross booking value soared by 88.5% to INR 307 billion ($3.2 billion). This marks the fourth consecutive year of positive consolidated EBITDA for the company.
Reporting based on coverage first published by skift.com.