OYO is a hotel startup founded in India in 2012 by Ritesh Agarwal, a college dropout who was inspired to start his own business. OYO’s success story is about Agarwal’s desire to improve the budget accommodation sector by offering customers affordable, easy-to-book, and trusted rooms

Agarwal’s journey to OYO began when he was 17 years old and launched Oravel Travels, an Airbnb-based platform for listing and booking budget accommodations. In 2013, after receiving a $100,000 grant from the Thiel Fellowship, Agarwal renamed Oravel to OYO and established the company in California to help manage an Indian hotel. The hotel in Gurgaon, which was later rebranded as OYO, saw a sharp increase in occupancy rates from 19% to 90% in its first month. After returning to India, Agarwal saw the opportunity to elevate budget accommodations worldwide. 

OYO’s concept is focused on smart updates, optimized services, and dynamic pricing. OYO rooms are designed to provide a cozy atmosphere, and are equipped with modern amenities such as free Wi-Fi, comfortable beds, and clean bathrooms

Why is OYO so successful

OYO has been successful because it’s able to offer affordable, clean, and trusted rooms in convenient locations. OYO’s success can also be attributed to its ability to standardize hotels, which helps improve customer service. OYO’s franchise model, which involves partnering with independent hotel owners and providing them with technology, branding, and operational support, has also helped OYO expand quickly. OYO’s technology-driven approach, which includes a hotel management app, central reservation system, and integrated payment gateway, has also helped streamline operations, reduce costs, and improve the customer experience. 

Who are the biggest competitors of OYO

As of April 2024, OYO’s competitors include:

Treebo, FabHotels, RedDoorz, Bloom, V Resorts, Zo Rooms, Roomoncall, and Ulo Hotels

Other competitors of OYO include:

Yatra, MakeMyTrip, ClearTrip, NestAway, Stanza Living, Bag2Bag, Airbnb, HotelTonight, SaffronStays, and MyTwinPlace. 

According to Quora, OYO and Fab are small competitors in a market dominated by big players like MakeMyTrip, Yatra, Cleartrip, Expedia, Booking.com, Agoda, TUI, Sita Travel, Kuoni, and Via.com

Is Oyo the largest hotel chain in the world

No, OYO is not the largest hotel chain in the world. As of April 2024, Marriott International is the world’s largest hotel chain with over 1.5 million rooms in 139 countries. OYO is the third largest hotel chain in the world by room count, with over 850,000 rooms in more than 23,000 hotels across 800 cities in 10 countries

OYO is India’s largest hotel chain, with 173,000 rooms under management. In China, OYO is the largest single hotel brand and the second largest hotel chain

Humbled to announce that we are – as of June 2019 – the world’s third largest hotel chain by room count, having surpassed several traditional and well-established hospitality brands

How big is the OYO company

As of January 31, 2024, OYO had 1,788 employees. As of March 31, 2023, OYO had an annual revenue of $698 million. In 2022, OYO’s valuation was $9.6 billion, reflecting its rapid growth and success in capturing market share

OYO was founded in 2012 by Ritesh Agarwal in Gurgaon, India. As of January 2020, OYO had more than 43,000 properties and 1 million rooms across 800 cities in 80 countries

Who is the biggest investor in OYO

As of October 2023, SoftBank is the largest investor in OYO, with a 46.62% stake. OYO’s founder and CEO, Ritesh Agarwal, owns 33.15% of the company. Other investors include: 

• RA Hospitality: 24.94% 
• Lightspeed: Minority stake 
• Peak IV (Ex Sequoia): Minority stake 
• Hero Group: Minority stake 
• Peak XV Partners: Formerly known as Sequoia Capital India

OYO has 54 institutional investors including SoftBank Vision Fund, Lightspeed India and Airbnb. SoftBank is the largest institutional investor in OYO

How much funding has OYO raised

As of April 29, 2024, OYO has raised $3.23 billion in funding over 16 rounds. As of March 12, 2024, OYO has raised $3.3 billion in funding over 19 rounds. OYO’s first funding round was on November 27, 2012, and its most recent funding round was a debt financing round on March 12, 2024

Some of OYO’s recent funding rounds include:

• August 20, 2021: $5 million in a Series F round led by Microsoft 
• July 16, 2021: $660 million in conventional debt from Fidelity Investments 
• March 1, 2021: Undisclosed amount in a Series F round from GSV 

In January 2024, OYO was in talks with Khazanah Nasional Berhad, a Malaysian sovereign wealth fund, to raise $400 million in a funding round. If the deal goes through, it would be OYO’s first funding in two years

The founder Ritesh Agrwaal stake in OYO

As of April 27, 2024, Ritesh Agarwal, the founder of OYO, owns 33.15% of the company. Of that, 24.94% is held through RA Hospitality Holdings (Cayman). SoftBank is the largest shareholder with 46.62% of OYO, while other investors like Lightspeed, Peak IV (Ex Sequoia), and Hero Group have minority stakes

What is the net worth of founder Ritesh Agrwaal

As of March 2024, Ritesh Agarwal’s net worth is estimated to be around ₹16,000 crore. Agarwal is an Indian billionaire entrepreneur and the founder and CEO of OYO Rooms, a hospitality business and app that operates in 154 cities across India

Ritesh Agarwal (born 16 November 1993) is an Indian billionaire entrepreneur and the founder and CEO of OYO Rooms. He has also appeared in Shark Tank India (season 3) since 2024. Agarwal’s net worth is estimated to be around ₹16,000 crore as of March 2024

Who is richest in Shark Tank India?

From being the richest shark to having a whopping net-worth of approximately Rs 16000 crores: Lesser known facts about Shark Tank India 3’s Ritesh Agarwal

What is the value of OYO Rooms?

The hospitality firm’s last reported valuation was over $9 billion. Oyo’s revised filing sized its IPO at 40-60% of the original proposal of $1.2 billion, or Rs 8,430 crore (conversion rates as of that time

Who is CEO of OYO Rooms?

Ritesh Agarwal (Jun 2013–)OYO Rooms/CEO

Author: Ritesh Agarwal. Ritesh Agarwal is the founder and CEO of OYO Hotels & Homes. Travelling across India at the age of 17, Ritesh stayed in more than 100 bed and breakfasts, guest houses, and hotels to realize there was a massive dearth of affordable and good-quality hotels in the budget hotel category

What is OYO famous for?

OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full stack technology that increases earnings and eases operations

Why is it called OYO?

The Full Form of OYO is just a brand name ‘On Your Own’. The company, OYO Rooms, is a hotel chain and vacation rental online marketplace based in India. It was founded in 2013 by Ritesh Agarwal, and its name is a play on the phrase “On Your Own.”

In the earlier days, the hospitality industry operated on a localized scale, limiting itself to specific areas. People often discovered accommodations only upon reaching their destination or relied on agents for lodging during travel. The unbranded nature of this industry introduced uncertainties, which were subsequently addressed and reshaped during the internet and technological boom.

This transformative period saw the emergence of various players, such as Airbnb and FabHotels, with OYO standing out among them. OYO’s rapid success and widespread popularity played a pivotal role in branding and restructuring the entire industry in our country. Notably, OYO has evolved to become the third largest hotel chain globally

OYO – About

OYO, also referred to as OYO Hotels or OYO Rooms, is an international hospitality platform that offers reasonably priced lodging options all over the world. The business offers consumers the option to choose rooms and living areas that best fit their needs at an affordable price by listing both franchised and leased hotels on its marketplace

OYO – Startup Story

While residing in California in 2013, Ritesh Agarwal established OYO with the original goal of running an Indian hotel through Oravel Stays. Targeting low-cost tourists online, the hotel in Gurgaon later rebranded as OYO saw a sharp increase in occupancy rates in just its first month, going from 19% to 90%. After coming back to India, Agarwal saw the opportunity to elevate budget accommodations all throughout the world.

OYO’s concept arose from Agarwal’s desire to please both owners and guests. It is focused on smart updates, optimized services, and dynamic pricing. OYO’s strategy, which was centered on the preferences of its guests and little elements like soft white light, enhanced reviews and guaranteed profitability, signifying its transformation from a single property to a worldwide hospitality network.

Oyo buissness model

Oyo is a hospitality company that offers travelers a network of standardized rooms at budget prices. Oyo’s business model has changed from an aggregator model to a franchise model. In the franchise model, Oyo charges a commission of 22% from its partners, though this may vary depending on the services offered. Customers also pay a room reservation fee, which is a few percentage margins of the hotel’s price. For example, if a room is priced at Rs. 1,000 per night, Oyo makes a 10-20% commission from it. Oyo also offers memberships that range from Rs 500 to Rs 3000

Here are some other strategies that Oyo uses:

• Making cancellations easier for customers 
• Giving travelers credits that can be used to rebook a stay later 
• Using technology to manage the rooms and optimize their utilization 
• Using digital marketing to acquire customers and generate leads 
• Using social media platforms to target potential customers

Business Model of Oyo Rooms – How Oyo Rooms Work

Oyo Rooms is the largest branded network of hotels currently operating 450,000 listings in 5,000 cities in India, Malaysia, UAE, Nepal, China and Indonesia. The company started off its operations by building its business model around the aggregator business model but things have changed since 2018.

Earlier, the company used to organize the partner with hotels, lease some rooms, and sell them under its own brand. Even though the process is still the same, Oyo’s business model has changed its route to a new structure

OYO famous taglines

OYO Rooms has had multiple taglines, including:

• #AurKyaChahiye: This tagline conveys that OYO Rooms offers everything a guest needs for a comfortable stay. 
• OneForEveryone: This tagline highlights that OYO Rooms caters to a variety of traveler needs. 
• Need a time out? Find a stay nearby: This tagline is featured in a film that highlights OYO’s brand campaign

What does OYO logo means

OYO’s logo is made up of simple geometric shapes and text, and is in the public domain. The logo’s curvy font is meant to represent the easy-going nature of travelers, and the sun is meant to represent the fun and pleasantness of planning a trip

According to a Quora user, the logo may also be a representation of Lord Jagganath, a popular image in Ritesh Agarwal’s home state of Cuttack, Odisha. In the logo, the two O’s represent the eyes and the Y’Y represents the nose

OYO stands for “on your own“. The name reflects the website’s concept, which allows users to filter rooms by budget and choose from a variety of hotel categories. OYO is an Indian hotel chain and vacation rental marketplace that offers affordable and reliable accommodations that guests can book right away

The Full Form of OYO is just a brand name ‘On Your Own‘. The company, OYO Rooms, is a hotel chain and vacation rental online marketplace based in India. It was founded in 2013 by Ritesh Agarwal, and its name is a play on the phrase “On Your Own.

What are the future plans of OYO

As of April 2024, OYO’s plans for 2024 include adding over 250 hotels in the U.S., which would be a 150% increase from the previous year.OYO also plans to add 1,500 Super OYOs by the end of FY24, and over 1,000 hotels through its Accelerator Program by December 2023. In addition, OYO plans to expand in key business cities in India, including Bangalore, Hyderabad, Chennai, Delhi, Kolkata, and Mumbai. OYO is also opening 400 new properties in major spiritual hotspots, such as Ayodhya, Puri, Shirdi, Varanasi, Amritsar, Tirupati, Haridwar, Katra-Vaishno Devi, and the Char Dham

OYO’s strategy for growth includes:

• Maximizing local market potential 
• Technological innovation to address market pain points 
• Strong collaboration with industry stakeholders 
• Identifying premium properties across all key regions 
• Onboarding and equipping premium properties with the latest technological tools 
• Increasing the visibility of premium properties

OYO has announced that it now plans to add more than 1000 hotels as part of the Accelerator Program by December 2023. It also plans to add more than 100 first generation hoteliers and offering financial assistance to facilitate expansion in new markets. It has already extended support worth Rs 10 crore

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