Oyo Rooms

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OYO Rooms
Trade name
OYO Rooms
OYO Hotels and Homes
TypePrivately held company
IndustryHospitality
Founded2013; 8 years ago (2013)
FounderRitesh Agarwal
HeadquartersGurgaon, Haryana, India
Area served
Asia, Europe and America
Key people
Ritesh Agrawal (CEO)
RevenueIncrease ₹ 6657 Crore
(US$ 951 million) (2019)
Negative increase ₹ -2345 Crore
(US$ -335 million) (2019)
Websitewww.oyorooms.com
Part of a series on
Homestays
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OYO hotel in Johor, Malaysia

OYO Rooms (stylised as OYO), also known as OYO Hotels & Homes, is an Indian multinational OTA, homes and living spaces. [1][2][3][4] Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. The startup expanded globally with thousands of hotels, vacation homes and millions of rooms across more than 80 nations[5] including India, Malaysia,[6] UAE, Nepal,[7] China, Brazil, Mexico, UK, Philippines, Japan,[8] Saudi Arabia, Sri Lanka,[9] Indonesia, Vietnam, the United States[10] and more.[11][12]

The company's investors include SoftBank Group, Didi Chuxing, Greenoaks Capital, Sequoia India, Lightspeed India, Hero Enterprise, Airbnb and China Lodging Group.

History[]

In 2012, Ritesh Agarwal launched Oravel Stays to enable listing and booking of budget accommodations; he renamed the firm to OYO in 2013.[13]

OYO partners with hotels to give similar guest experience across cities. Shortly after launching Oravel Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel Fellowship, a two-year program from PayPal co-founder Peter Thiel.[14][15][16] OYO currently has over 17,000 employees globally,[17][18] of which approximately 8000 are in India and South Asia. OYO Hotels & Homes is a full-fledged hotel chain that leases and franchises assets. The company invests in capex,[19] hires GMs to oversee operations and customer experience as well as generating around a million job opportunities in India[20] and South Asia alone. OYO has also set up 26 training institutes for hospitality enthusiasts across India.[21]

In April 2021, it was claimed by several news reports and social media posts that OYO had filed for bankruptcy,[22][23] but CEO Ritesh Agarwal clarified it to be untrue.[22][24][25] However he admitted that the National Company Law Appellate Tribunal (NCLAT) initiated a insolvency resolution process on OYO Hotels on the basis of a hotelier's petition over a monetary dispute with the company.[25][22]

Funding[]

In September 2018, OYO raised $1 billion, of which the RoC filing for the amount of $100 million raised from Star Virtue Investment Ltd. was made on 13 February 2019.[26]

In February 2019, OYO received $100 million funding from the Chinese vehicle for hire company Didi Chuxing.[27]

In July 2019, Founder & CEO Ritesh Agarwal, through RA Hospitality Holdings (Cayman),[28][29] signed a $2 billion deal to buy back shares from existing investors Lightspeed Venture Partners and Sequoia India, to increase his stake in the company to 30%.[30] The company was valued at $10 billion with this deal.[31][32]

In October 2019, OYO raised Series F funding of $1.5 billion led by SoftBank Group, Lightspeed Venture Partners and Sequoia India.[33]

In July 2021, OYO closed a debt financing round of $660 million from global institutional investors to service existing loans.[34]

In July 2021, Microsoft looks to invest in Oyo before potential IPO IT giant Microsoft is in talks to invest in online hotel chain Oyo at a $9 billion valuation before Oyo's IPO. The deal between Microsoft and Oyo could be declared in the coming weeks and is likely to be a precursor to the hotel chain's IPO. [35]

Financial results[]

In 2019, OYO registered a revenue of USD 951 million, a 4.5 times increase on a year on year basis, as compared to USD 211 million.[36][37]

Acquisitions and partnerships[]

In 2019, OYO acquired Hooters Casino Hotel near the Las Vegas Strip

In March 2016, OYO acquired the team of Qlik Pass, founded by Rahul Gupta & Rishi Swami to setup and lead its Data Science Department. [38]

In March 2018, OYO acquired [[]]-based service apartment operator Novascotia Boutique Homes[39][40] marking its first major buyout as well as establishing its presence in the service apartment and corporate executive stay. Also in 2018, the company acquired Weddingz.in, a Mumbai-based online marketplace for wedding venues and vendors marking its entry into the fragmented $40 billion wedding industry.[41]

In 2019, and Airbnb announced a strategic partnership with Airbnb investing in OYO and the company will list their properties on Airbnb platform.[42] In March 2019, OYO announced a 1400 cr investment in its India and South Asia businesses over 2019 as a part of its efforts to increase infrastructure, strengthen technology and internal capability.[43] In April 2019, OYO announced a strategic global distribution partnership with bedbank Hotelbeds.[44] The company also announced two joint-venture with Softbank and Yahoo!Japan.

In May 2019, OYO announced the acquisition of Amsterdam-based @Leisure Group, Europe's largest vacation rental company.[45] In July 2019, OYO announced the acquisition of Innov8.[46] And in August 2019, Oyo made its first major investment in the United States by purchasing the Hooters Casino Hotel, near the Las Vegas Strip, in partnership with US-based real estate company Highgate, for $135 million.[47][48]

Products and services[]

OYO Rooms, OYO Hotels & Homes has a multi-brand approach. These include:

  • OYO Townhouse[49]which is promoted as the neighbourhood hotel is in the midscale segment targeted at millennial travellers.[citation needed]
  • OYO Home, which OYO claims is India's maiden Home Management System that offers private homes in different locations and are fully managed by OYO.[50][51]
  • OYO Vacation Homes which identifies itself as the world's 3rd largest vacation home brand with vacation rental management brands Belvilla,[52] Danland,[45] and DanCenter[53] along with Germany-based Traum-Ferienwohnungen.
  • SilverKey launched in April 2018, caters to the needs of the corporate travellers undertaking business trips for a short or long duration.[54][55]
  • Capital O offers hotel booking services.[56]
  • Palette offers the perfectly curated staycation for those in search of an intuitive experience at competitive prices, an upper-end leisure resorts category.[57][58]
  • Collection O offers booking and renting services to business travelers.[59][60]
  • OYO LIFE, targeted at millennials and young professionals in search of fully managed homes on long-term rentals, at affordable prices.[61][62]
  • YO! HELP is a self-help tool that offers support for check-ins, check-outs and payments. [63]

OYO Partner Engagement[]

In April 2019, the company announced the launch of OPEN programme, an initiative for its partner hotels to help them reach their business goals. It further Introduced upgraded Co-OYO app for hotel partners to provide complete visibility on all business & customer metrics. [64]

Criticism[]

In 2019, OYO rooms planned to implement a digital register mechanism which will allow it to share customer data in real time with the government. This was described as a threat to privacy.[65]

OYO has been accused of using predatory pricing and not following its own agreements including threatening hotels to unilaterally change some of the clauses or not be paid.[66]

In 2018, the company sent mass unsolicited job offer emails targeting senior- and mid-level employees of competitors.[67]

References[]

  1. ^ "Subscribe to read | Financial Times". www.ft.com. Retrieved 3 April 2020. Cite uses generic title (help)
  2. ^ "Wit8.5 lakh rooms, Oyo claims third spot globally". Moneycontrol.com. 10 July 2019.
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  4. ^ Gooptu, Biswarup (22 May 2019). "OYO claims to be second-largest hotel group in China". The Economic Times.
  5. ^ "Oyo Startup Story". Startup Stories. 27 June 2021.
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  10. ^ "Hotel Unicorn Oyo Plots $300 Million Push into the U.S. Market". Bloomberg L.P. 19 June 2019.
  11. ^ CHAUDHARY, DEEPTI (2 March 2018). "More room at the top". Fortune.
  12. ^ Jog, Natasha (6 August 2015). "At 21, He's the Mind Behind Multi-Million Dollar Start-Up OYO". NDTV.
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  35. ^ "Microsft looks to Invest before IPO".
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  58. ^ "OYO forays into upper-end leisure resorts category; launches Palette Resorts". The Economic Times. 30 August 2018.
  59. ^ "OYO woos biz travellers with Collection O; ups investment". Deccan Chronicle. 13 March 2019.
  60. ^ "OYO's Collection O Hotels reaches milestone 175 buildings in 3 months". Asian News International. 13 July 2019.
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  63. ^ "Yo! Help comes to Oyo's rescue". The Economic Times. 18 August 2020. Retrieved 26 August 2020.
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  65. ^ "Oyo Rooms wants to share digital record of your check-ins with government". India Today. 15 January 2019.
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  67. ^ S.H., Salman (27 April 2018). "All's fair in talent war: Oyo targets staff at rivals". Mint.

External links[]

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