By Mr. Abhay Ray 
Introduction to OYO
OYO Online booking hotel accommodation booking platform. Users can book accommodations by selecting preferred rooms and providing destination, user details, payment details, preferred dates, and more. OYO has evolved to become the third-largest hotel chain globally. The platform provides a hotel and house booking service with sanitized stays in various locales.
Incorporation – OYO Founded in 2012, by Ritesh Agarwal when he was just 19 years old. Headquarters in Gurgaon, Haryana.
Mission and Vision of OYO
Mission: The Company 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. Bringing affordable and trusted accommodation that guests can book instantly.
Vision: OYO’s vision is to empower entrepreneurs and small businesses with homes and hotels to increase earnings and simplify their operations.
Founder Details of OYO
Ritesh Agarwal was born born 16 November 1993 a Marwari family in Bissam Cuttack, Odisha, and grew up in Titilagarh. He is an Indian billionaire entrepreneur and the founder and CEO of OYO Rooms. Agarwal listed among Top 10 youngest Indian billionaires in Hurun Rich List of India 2024.
- Ritesh Agarwal – Education
He completed his education at Sacred Heart School and later at St. Johns Senior Secondary School. In 2011, he relocated to Delhi for college. He briefly enrolled in the University of London’s International Program at the Indian School of Business and Finance.
- Ritesh Agarwal – Career
OYO Rooms is identified as a potential future unicorn in a study by CB Insights, as reported in The New York Times. The company has secured a total funding of $125 million through four rounds from seven investors. Ritesh Agarwal, the founder, has received numerous awards, including the Business World Young Entrepreneur Award, acknowledging his notable contributions. He is a frequent speaker at entrepreneurial events globally and holds a fellowship with the Thiel Foundation.
- Awards and Recognitions
In 2016, Ritesh Agarwal earned a spot in Forbes’ “30 under 30: Consumer Tech” list for his role as the founder and CEO of the innovative hospitality business and app.
Reflecting his remarkable achievements, Agarwal’s net worth in 2020 was estimated at around $1.1 billion (Rs 7253 crore). This positioned him as the youngest self-made billionaire globally, a recognition acknowledged by the Hurun Rich List. In 2023, Agarwal achieved another milestone by becoming the youngest Shark to be featured in Shark Tank India.
Services of OYO
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. OYO Apart from standard hotel accommodations, OYO provides an extensive array of services, assisting users in locating residences, holidays, long-term and short-term rentals, and meeting different business or corporate travel requirements. OYO is positioned as a flexible participant in the international hospitality market.
IPO details of OYO
The company planned to raise Rs 8,430 cr or $1.2 bn through the public listing in early 2022. The offer comprises fresh issuance of up to Rs. 7,000 cr or $966 million and an offer for sale aggregating up to Rs 1,430 cr or $197 million.
OYO – Funding and Investors
OYO went through 21 funding rounds as of 2024 out of which it has raised $3.5 billion. Their latest funding was raised on Aug 11, 2024, from a Series G round of $175 million by Incred Wealth.
|
Date |
Round | Amount | Investors |
| August 11, 2024 | Series G | $175 million |
Incred Wealth, Patient Capital, J&A Partners, Mankind Pharma promoters and ASK Financial Holdings |
|
July 3, 2024 |
Series G | $50 million | Incred Wealth |
| January 13, 2022 | Secondary Market | $29.72 million |
Qatar Insurance Company |
|
July 29, 2021 |
Series F | $5 million | Microsoft |
| July 1, 2021 | Secondary Market | $8 million |
– |
|
March 11, 2021 |
Debt Financing | $200 million | SoftBank Vision Fund |
|
January 6, 2021 |
Series F | Rs 54 crore |
Hindustan Media Venture |
| December 10, 2019 | Series F | $1.5 billion |
Ritesh Agarwal and SoftBank |
|
November 30, 2019 |
Debt Financing | $6.73 million | MyPreffered Transformation |
| April 1, 2019 | Series E | $75 million |
Airbnb |
|
February 14, 2019 |
Series E | $100 million | Didi |
| December 7, 2018 | Series E | $100 million |
Grab |
|
September 25, 2018 |
Series E | $800 million |
SoftBank Vision Fund |
OYO – Acquisitions
OYO has acquired 10 companies around the world so far. The latest acquisition was announced on September 20, 2024, that Oravel Stays Ltd, the parent company of OYO, had acquired G6 Hospitality LLC, the parent company of the Motel 6 and Studio 6 brands for $525 million.
|
Date |
Company | Amount |
| September 20, 2024 | G6 Hospitality |
$525 million |
|
August 10, 2022 |
Bornholmske Feriehuse | – |
| May 9, 2022 | Direct Booker |
– |
|
September 2, 2019 |
Danamica | $10 million |
| May 1, 2019 | Leisure Group |
$415 million |
|
March 26, 2019 |
Qianyu Islands | – |
| March 15, 2019 | Innov8 Coworking |
$30 million |
|
August 13, 2018 |
Weddingz | – |
| July 10, 2018 | AblePlus Solutions Pvt Ltd. |
– |
|
March 18, 2018 |
Novascotia Boutique Homes |
– |
OYO – Growth
OYO Corporate Business Solution has 4,000+ exclusive hotels, as mentioned on their website as of January 2024. OYO Corporate Business Solution has a presence in 230+ cities and towns as of January 2024, spanning across 4 countries. OYO has over 174,000 hotels and homes around the nation as of January 2024. It is present in over 35 countries as of January 2024. OYO reached the milestone of 100 million downloads in 2021. The estimated company valuation is $2.7 billion as of August 2024.
OYO – Financials
OYO made a profit of INR 158 crore in the second quarter of FY25, ending in September, as shared by the founder Ritesh Agarwal in a townhall meeting, according to sources. OYO’s parent company, Oravel Stays Ltd, had a loss of INR 50 crore during the same period last year in FY24. In the first quarter FY25, OYO’s profit after tax was INR 132 crore, bringing its total profit for the first half of FY25 to INR 290 crore ($35 million). This is a big turnaround from the INR 91 crore net loss in the same period last year. OYO’s revenue in Q2 FY25 also grew to INR 1,578 crore, up from INR 1,413 crore in Q1.
|
OYO Financials |
FY23 | FY24 |
| Operating Revenue | INR 5464 crore |
INR 5389 crore |
|
Total Expenses |
INR 6800 crore | INR 5726 crore |
| Profit/Loss | Loss of INR 1286 crore |
Loss of INR 230 crore |
OYO – Awards and Recognitions
OYO has won various awards. Some of the prominent ones are:
- In the hospitality sector, the Ministry of Skill Development and Entrepreneurship presented the 2017 National Entrepreneurship Award to OYO.
- OYO won the 2019 ASEAN-India Excellence & Achievement Award.
- OYO won the 2018 ET Startup Awards, the biggest startup competition in India.
Competitors of OYO
- MakeMyTrip
- FabHotels
- Treebo
- Airbnb
- Yatra
Conclusion
OYO Rooms’ journey from a small startup to a global hospitality giant demonstrates resilience and innovation. In the span of 10 years OYO became one of the top hotel chains in the world .With a customer-centric approach and a diversified revenue model, OYO has reshaped the budget accommodation sector, making affordable travel accessible to millions worldwide.OYO’s future looks promising, with opportunities for global expansion and potential moves into the luxury market. The company’s commitment to innovation and adaptability will ensure that it continues to lead the pack in the hospitality industry.
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