Ritesh Agarwal, a college dropout from Odisha, founded Oravel Stays in 2012, inspired by Airbnb. In 2013, he transformed it into OYO Rooms, receiving a $100,000 Thiel Fellowship grant.
Established in 2013, OYO has expanded to over 5000 cities in 118 countries. With 1.5 million rooms and 190K homes and hotels worldwide, OYO is a household name in hospitality.
Aggregator Model: Leasing and branding rooms. Franchise Model: Collaborating with hotels under the OYO brand. Partnership Model: Revenue-sharing with partner hotels.
Commissions: From hotel partners. Room Booking Fees: Customer fees per booking. Franchise Fees: For using the OYO brand. Membership Fees, Ads, advertising and consulting services.
Over 54 institutional investors, led by SoftBank Vision Fund. Acquired 12 companies, including Innov8 and Novascotia Boutique Homes.
Customer Centric Approach: Personalized and value-based services. Digital Marketing and Celebrity Endorsements: Utilizing social media and featuring stars like Sonu Sood. Advanced Technology: Leveraging data for better customer experiences.
Faced high cash burn rates, legal disputes, and the impact of COVID-19. Plans to add 1500 Super OYOs and expand religious tourism by 2024.