Oyo Rooms

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OYO Rooms
OYO Rooms
OYO Hotels and Homes
TypePrivate 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
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] Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels.[3A] The startup expanded globally with thousands of hotels, vacation homes and millions of rooms across more than 80 nations[4] including India, Malaysia,[5] UAE, Nepal,[6] China, Brazil, Mexico, UK, Philippines, Japan,[7] Saudi Arabia, Sri Lanka,[8] Indonesia, Vietnam, the United States[9] and more.[10][11]

History[edit]

In 2012, Ritesh Agarwal launched Oravel Stays to enable listing and booking of budget accommodations; he renamed the firm to OYO in 2013.[12] 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.[13][14][15]

In 2019, OYO had over 17,000 employees globally,[16][17] 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,[18] hires general managers to oversee operations and customer experience, and generates around a million job opportunities in India[19] and South Asia alone. OYO set up 26 training institutes for hospitality enthusiasts across India in 2019.[20]

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 an upgraded Co-OYO app for hotel partners to provide complete visibility on all business & customer metrics. [21]

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

In June 2021, Oyo Rooms collaborated with Yatra, Airbnb, and EaseMyTrip to form the Confederation of Hospitality, Technology and Tourism Industry (CHATT), an industry body for the tourism sector of India.[26]

Funding[edit]

In September 2018, OYO raised $1 billion, of which the RoC filing[clarification needed] for the amount of $100 million raised from Star Virtue Investment Ltd. was made on 13 February 2019.[27]

In February 2019, OYO received $100 million funding from the Chinese vehicle-for-hire company, Didi Chuxing.[28]

In July 2019, Ritesh Agarwal, through RA Hospitality Holdings in Cayman Islands,[29][30] 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%.[31] The company was valued at $10 billion with this deal.[32][33]

In October 2019, OYO raised Series F funding of $1.5 billion led by SoftBank Group, Lightspeed Venture Partners and Sequoia India.[34]

In July 2021, OYO closed a debt financing round of $660 million from global institutional investors to service existing loans.[35]

Again, in July 2021, Microsoft expressed interest to invest in OYO before its IPO[36] and a multi-year strategic deal was signed in September 2021.[37]

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

Financial results[edit]

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[clarification needed].[38][39]

Acquisitions and partnerships[edit]

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 and Rishi Swami, to setup and lead its data science department. [40]

In March 2018, OYO acquired Chennai-based service apartment operator, Novascotia Boutique Homes,[41][42] to establish its presence in the service apartment and corporate executive stay segment. It further acquired Weddingz.in, a Mumbai-based online marketplace for wedding venues and vendors, marking its entry into the fragmented $40-billion wedding industry.[43]

In 2019, OYO and Airbnb announced a strategic partnership where OYO would list their properties in the Airbnb platform.[44] In March 2019, OYO announced a 1400 crore investment in its India and South Asia businesses to increase infrastructure, strengthen technology and internal capability.[45] In April 2019, OYO announced a strategic global distribution partnership with Hotelbeds.[46]

The company also announced two joint-venture with Softbank[47] and Yahoo! Japan in 2019.[48]

In May 2019, OYO announced the acquisition of Amsterdam-based @Leisure Group, Europe's largest vacation rental company.[49] In July 2019, OYO announced the acquisition of Innov8, a co-working space in New Delhi.[50] 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.[51][52]

Products and services[edit]

OYO Rooms has a multi-brand approach. These include:

  • OYO Townhouse, which is promoted as the neighbourhood hotel is in the midscale segment targeted at millennial travellers.[53][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.[54][55]
  • OYO Vacation Homes, which identifies itself as the world's 3rd largest vacation home brand with vacation rental management brands Belvilla,[56] Danland,[49] and DanCenter,[57] along with Germany-based Traum-Ferienwohnungen.
  • SilverKey, caters to the needs of the corporate travellers undertaking business trips for a short or long duration.[58][59]
  • Capital O offers hotel booking services.[60]
  • Palette offers the perfectly curated staycation for those in search of an intuitive experience at competitive prices, an upper-end leisure resorts category.[61][62]
  • Collection O offers booking and renting services to business travelers.[63][64]
  • OYO LIFE is targeted at millennials and young professionals in search of fully managed homes on long-term rentals, at affordable prices.[65][66]
  • YO! HELP is a self-help tool that offers support for check-ins, check-outs, and payments [67]

Criticism[edit]

In 2019, OYO 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.[68]

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.[69]

In 2018, the company sent mass unsolicited job offer emails targeting senior- and mid-level employees of competitors.[70]

Controversies[edit]

In 2021, Zostel planned to move SEBI against Oyo's planned IPO.[71]

References[edit]

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  2. ^ "How OYO became India's 3rd best company to work for in just 6 years". The Financial Express (India). 7 April 2019.
  3. ^ Gooptu, Biswarup (22 May 2019). "OYO claims to be second-largest hotel group in China". The Economic Times.
  4. ^ "Oyo Startup Story". Startup Stories. 27 June 2021.
  5. ^ Mishra, Aparna (12 January 2016). "OYO Rooms Goes International; Launches in Malaysia". Inc42.
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  10. ^ CHAUDHARY, DEEPTI (2 March 2018). "More room at the top". Fortune.
  11. ^ Jog, Natasha (6 August 2015). "At 21, He's the Mind Behind Multi-Million Dollar Start-Up OYO". NDTV.
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  46. ^ "Hotelbeds & Oyo Hotels & Homes announce strategic distribution partnership". The Economic Times. 15 April 2019. Retrieved 26 March 2020.
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  55. ^ "Unlocking Homes for Great Holiday Experiences". OYO Rooms. 15 September 2017.
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  63. ^ "OYO woos biz travellers with Collection O; ups investment". Deccan Chronicle. 13 March 2019.
  64. ^ "OYO's Collection O Hotels reaches milestone 175 buildings in 3 months". Asian News International. 13 July 2019.
  65. ^ "Why OYO Life is betting big on the co-living market in India". The News Minute. 9 May 2019.
  66. ^ "Oyo looks to enter student housing and co-working, to expand co-living segments". The Economic Times. 6 May 2019.
  67. ^ "Yo! Help comes to Oyo's rescue". The Economic Times. 18 August 2020. Retrieved 26 August 2020.
  68. ^ "Oyo Rooms wants to share digital record of your check-ins with government". India Today. 15 January 2019.
  69. ^ Chaturvedi, Anumeha (1 December 2018). "Budget hotels teaming up to take legal route against Oyo". The Economic Times.
  70. ^ S.H., Salman (27 April 2018). "All's fair in talent war: Oyo targets staff at rivals". Mint.
  71. ^ "Zostel plans to take Oyo IPO complaint to Sebi". Economic Times. 4 October 2021.

External links[edit]

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