JP Morgan has reportedly provided Oyo with a credit facility worth Rs 200 crore, according to sources familiar with the matter. The main purpose behind this credit line is to support the expansion of Oyo's Accelerator Program. However, both Oyo and JP Morgan declined to comment on the development.
Oyo launched its Accelerator Program in March last year with the goal of assisting 50 first-generation hoteliers. This initiative aims to empower hotel owners to expand their portfolios, especially as travel demand increases in business and leisure cities.
Currently, Oyo's Accelerator Program supports over 700 hotels and more than 85 small and first-generation hoteliers nationwide. Eligible participants must own more than five operational hotels.
Under this programme, Oyo provides mentorship, technology access, relationship managers, financial assistance, and access to its extensive network of corporate accounts and travel agents to enhance business opportunities for hotel owners.
Ritesh Agarwal, founder of Oyo, recently informed employees that the company's profit after tax (PAT) doubled sequentially in the third quarter of the fiscal year 2024, reaching Rs 30 crore. This follows the company's achievement of its first profitable quarter with a PAT exceeding Rs 16 crore in the second quarter of the fiscal year.
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