JP Morgan has extended a credit facility of Rs 200 crore to Oyo in support of its accelerator program within the hospitality sector, as reported by informed sources.

Launched in March 2023, Oyo's accelerator initiative is designed to empower first-generation hoteliers by providing them with financial assistance, mentorship, technological resources, and dedicated relationship management. Its primary objectives include fostering innovation, expanding into new markets, broadening customer bases, and enhancing earnings potential.

Currently, the program benefits over 700 hotels and more than 85 small and first-generation hotel proprietors nationwide, facilitating their business expansion and long-term profitability.

Participants in the accelerator program will also gain access to Oyo's extensive network, which includes over 15,000 corporate accounts and more than 10,000 travel agents across India, thereby enhancing their business opportunities.

Oyo recently disclosed a doubling of its profit after tax (PAT) in the third quarter (Q3) of fiscal year 2023-24 (FY24) to Rs 30 crore. Founder Ritesh Agarwal further revealed that the company achieved an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 750 crore in 2023, with projections indicating an increase to around Rs 1,000 crore in FY24, surpassing earlier estimates.

In addition, Oyo experienced a 10 percent year-on-year (Y-o-Y) revenue growth in Q3 FY24, with a notable 27 percent increase in the number of hotels on its platform, reaching 17,000 over the past year. The company also managed to reduce operating costs by 15 percent in Q3 FY24 compared to the previous year, contributing to its financial performance.