OYO ROOMS: INDIA'S LARGEST HOTEL CHAIN,DISRUPTING THE GLOBAL MARKET
Thehotel start-up based in India, Oyo does not need any introduction today. It isthe world's third-largest and fastest-growing hospitality chain and franchisedhotels, home and living spaces.
Thecompany started its operations by building its business model around the aggregatorbusiness model but things have changed since 2018. Present-day, it is operating450,000 listings and 5,000 cities in India, Malaysia, UAE, China, Indonesia,and Nepal. The budget room aggregator Oyo Rooms provides rooms at pricesfalling under a reasonable budget segment, enabling customers to accessseamless amenities and experiences. The full form of OYO is 'On Your Own'.
Oyodost does not own or operate most of the hotels; it just ties up with the holesand ensures the hotels provide quality services to the guests, who book roomsthrough the OYO platform or application. The current operating model of Oyo isto ask the hotel partners top to operate them as a franchise. The company hasgood brand equity and boasts a 100% increment in revenue to its partner hotels.The major service of the company includes Hotel Rooms, Oyo Flagship, OyoTownhouse, Studio Stays, Event, and Other Long Stays, Commercial Places, andOyo Wizard.
Theco-founder and CEO of Oyo Rooms, Ritesh Agarwal was born on 16 November 1993,in Cuttack, Odisha, India. He did his schooling from St. Johns Senior SecondarySchool, Kota, and Rajasthan. Ritesh is an alumnus of the University of Londonwhere he did his graduation. Today, Ritesh heads among the most valuable start-upbut there was a phase in his life when he used to sell SIM cards. He started travellingto different places in India at the age of 17. He was completely unsatisfiedwith the current accommodation business in the country and hence decided tostart a hotel business. Today, he is one of the biggest businessmen in India.He has won many national and international awards because of his creative mindand hard work.
The Journey of Budget Room Aggregator
Thestory of Oyo Rooms almost like a fairy tale; an 18 years college dropout RiteshAgarwal has taken the foundation of OYO Room in 2013 after spotting theuntapped opportunity in organizing India's neighbourhood hotels. He seemed to harbour dreams ofentrepreneurship that compelled Ritesh to take the plunge with his first start-up.
Initially,the company enabled listing and budget accommodation of hotel rooms and laterit was converted to be Oyo Rooms. In the year 2013, the company's founder,Ritesh was selected for Thiel Fellowship; this is a 2-year-old program startedby the Paypal. This gave him funding of $100,000 to pursue and make real theidea of his start-up and Oyo was launched in Gurgaon. In 2014, the companyreceived its first Series A funding.
Nextyear, Oyo was funded with a whopping amount of $25 million from its investorsnamely Lightspeed India, Seqoiua and others. In the same year in April, the Oyoapp was launched that started writing the success story of this hotel chain start-up.Oyo now expanded to Kolkata, Goa, and Bangalore and has almost come up to 2000hotels, 20,000 rooms and 100 cities in the country. In July 2015, Oyo bagged$100 million in Series C round of funding from SoftBank.
InJanuary 2016, the company hit the 1 million check-ins marks and created anadvent outside India into the Asia Pacific market, beginning with Malaysia. Thehotel chain continued its expansion aspiration and launched a business in Nepalin 2017.
2018is considered the year that marked the wider creation of the Oyo empire inAsia-Pacific and started the global proliferation by establishing operations inthe Dubai, Indonesia, UK, UAE, Singapore, and China. The start-up became aunicorn in September afrisingsing funding of $800 million from SoftBank. Thisyear, Oyo gets supported by Greenoaks, Lightspeed India, China Lodging Groupand Sequoia.
Acquisitions and Partnerships
Novascotia Boutique Homes: It is a Chennai-based serviced apartment operation. Oyo markedits first major buyout and established its presence in the service apartment byacquiring Novascotia Boutique.
Weddingz.in:Weddingz.in is a Mumbai-based online marketplace for wedding venues andvendors. It was acquired by Oyo in 2018 with 40 billion dollar.
Leisure Group:Oyo announced the acquisition of Amsterdam-based Company in May this year. Itis Europe's largest rental company.
Hooters Casino Hotel: Oyo purchased this hotel in $135 million and made its first majorinvestment in the US.
Today,Oyo hotels are synonymous with quality-assured hospitality services; they broughtwonderful offering to provide an amazing experience to guests and ensure high profitfor asset owners at the same time. The company is on the way to be renowned asthe global force that transformed the way people stay away from home.