Japan’s SoftBank-backed hospitality and travel-tech startup OYO on Tuesday announced that it has promoted Rakesh Kumar as the chief financial officer (CFO) of the company with effect from Jan 1, 2024.
In his new role as the CFO, Kumar will continue to drive financial strategy and operational efficiency for the company. Meanwhile, Abhishek Gupta, the current CFO, will continue with OYO in an advisory and mentorship capacity, the company said in a statement.
Currently working as the company’s deputy CFO, Kumar oversees key financial functions, including business finance for all markets, treasury, controllership, shared services, financial and investor reporting, taxation, and financial planning and analysis.
In his last six years at OYO, he has played a pivotal role in the company’s financial stability during the COVID-19 pandemic. Kumar’s leadership facilitated successful equity and debt raises and strategic acquisitions, the statement added.
“Rakesh’s elevation to the role of CFO is a crucial milestone in our pursuit of financial stability. His leadership comes at a time when we continue to implement measures to enhance profitability and fortify our financial foundation. I wish him all the success in this new role,” said Ritesh Agarwal, Founder & CEO of OYO.
Concurrently, OYO announced that Ankit Tandon, global chief business officer and CEO SEAME, will also head investor relations, including M&As as well as the FP&A [financial planning & analysis] function.
Since the start of 2023, OYO has been restructuring its top deck as it gears up for an initial public offering. Earlier this year, global chief operating officer Abhinav Sinha took over the extra position of chief technology and product officer and Anuj Tejpal became the chief merchant officer. The two have been with the organisation since its early days.
Besides top-level reshuffle, OYO has witnessed a couple of exits also this year. Ankit Gupta, former India CEO; and Mandar Vaidya, the former Europe head; put in papers earlier this year to pursue their entrepreneurial ambitions.
The company reportedly filed a draft red herring prospectus (DRHP) for a likely slimmed-down IPO in March this year. It had initially filed to go public in October 2021 but delayed the share sale due to uncertain market conditions.
OYO reported an adjusted EBITDA of around Rs 245 crore ($29.9 million) in FY23, its first year as a profitable firm, and is reportedly aiming for an adjusted EBITDA of Rs 800 crore in FY24, its founder Ritesh Agarwal told employees in March this year.