SoftBank Group has announced its results for the quarter ended March 2016. The company gave updates on several of its marquee investments in India including Snapdeal, Ola, OYO Rooms and Hike Messenger. Curiously missing in the list was Housing. SoftBank stayed silent on this investment even though it is a majority shareholder in the company and had extended Rs 100 crore towards them in January.
Here is a look at the companies performance and their financials:
SoftBank’s presentation said that Snapdeal’s gross merchandise value (GMV) had grown 90% year-on-year. However, it does not provide any absolute figures to make an accurate comparison. A Business Standard report mentioned that Snapdeal had a gross merchandise value (GMV) of $2 billion at the end of 2014.
In September 2015, Kunal Bahl, CEO of Snapdeal, had said they would beat rival Flipkart’s GMV of $10 billion by March 2016, as indicated by this story in Economic Times.
From the ROC filings: Jasper Infotech, which runs Snapdeal, showed losses of Rs 1328 crore for the year ended March 2015. This was a sharp increase from Rs 264.6 crore from the previous year. Cash and bank balances stood at Rs 1,299.7 crore.
This year, SoftBank showed that the estimated arrival time of Ola cabs had improved by 55%. This was a departure from the preceding quarter where it provided data (albeit without absolute numbers) on its quarterly bookings. In the previous quarter, SoftBank said that Ola’s bookings increased 10 times from the same quarter last year.
In May 2015, Ola had a revenue run rate of around $450-500 million, as reported by this Economic Times report. A revenue run rate is how the financial performance of the company would be extrapolated over a period of time. For example, if a company has revenues of $100 million in its latest quarter, the company might say it has a $400 million run rate. All this is saying is that if the company were to perform at the same level for the next year, they’d have annual revenues of $400 million.
From the ROC filings: ANI Technologies, which runs Ola, reported reported Rs 51.05 crore revenue from operations and other income in FY 2013-14. This was a growth of over 200% from Rs 16.4 crore in the preceding financial year.
Losses in the period stood at Rs 34.22 crore compared to the loss of Rs 22.8 crore in the previous financial year.
OYO Rooms has hit profitable unit economics according to SoftBank’s presentation. OYO has registered 15x year-on-year growth with 2.3 million booked room-night transactions in Q1 Jan-Mar 2016. 95% of OYO’s traffic comes from their sales channels which includes their app, website and call-centre.
As of now, OYO has 5,855 hotels in its network with a total inventory of 68,300 rooms. Gurgaon, Delhi and Hyderbad were the cities which fared the best on OYO’s network of hotels.
Download : SoftBank’s presentation