OYO Rooms

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Oravel Stays Private Limited
OYO Rooms
OYO Hotels and Homes
Privately held company
IndustryHospitality
Founded2013; 6 years ago (2013)
FounderRitesh Agarwal
HeadquartersGurgaon, Haryana, India
Area served
Asia, Europe and Americas
Key people
Ritesh Agarwal (CEO)
Websitewww.oyorooms.com

OYO Rooms, also known as OYO Hotels and Homes, is a India’s[1][2] largest, world’s 3rd largest by room count[3] and fastest-growing chain of leased and franchised hotels, homes and living spaces. It is owned by Oravel Stays Private Limited and is based in Gurgaon, Haryana, India backed by the SoftBank Group, Greenoaks Capital, Sequoia Capital and Lightspeed India.

OYO currently present in more than 800 cities in over 80 countries, including the United States[4], China, Europe, Britain, India, Malaysia, Middle East, Indonesia, Philippines and Japan.[5][6]

History[edit]

In 2012, then 18-year-old Ritesh Agarwal, from Odisha's Rayagada district, launched Oravel Stays, a website for listing and booking budget lodging. After three months of research and staying in over 100 bed and breakfast homes, guest houses, and small hotels, he pivoted Oravel to OYO in 2013.[7]

Shortly after launching Oravel Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel Fellowship from Peter Thiel.[8][9]

In January 2016, the company launched operations in Malaysia.[10]

In April 2017, the company launched operations in Nepal.[11]

In late 2017, OYO launched OYO Home, an Airbnb-like marketplace for short-term managed rentals. OYO Home has presence in more than 10 leisure destinations of India including Goa, Shimla, Puducherry, Udaipur, Kerala etc. In April 2018, OYO launched its first international OYO Home in Dubai.[12][13]

In March 2018, Oyo acquired Chennai-based Novascotia Boutique Homes with adviser as ANOVA Corporate services.[14][15]

In October 2018, the company launched operations in Indonesia.[16]

In May 2019, Oyo announced that it would acquire Amsterdam-based vacation rental business @Leisure Group for €369.5 million.[17][18][19]

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.[20][21]

Financing[edit]

In March 2015, OYO raised Series A round of funding $24 million from Lightspeed Venture Partners, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners.[22] In August 2015, OYO raised another $100 million from SoftBank Group, an existing investor.[23]

In August 2016, OYO raised $90 million from Softbank Group, Innoven Capital and existing investors.[24]

In September 2017, OYO closed a $250 million series D round of funding led by Softbank Group, new investor Hero Enterprises led by Sunil Kant Munjal, Sequoia Capital, Greenoaks Capital and Lightspeed Venture Partners.[25]

China Lodging invested $10 million in OYO in September 2017.[26]

In September 2018, OYO raised $1 billion at a $5 billion valuation, including $800 million from SoftBank’s Vision Fund, Lightspeed, Sequoia Capital, and Greenoaks Capital and $100 million from DiDi.[27][28][29]

Controversies[edit]

Sharing of customer data with the government[edit]

In 2019, OYO rooms plans to implement a digital register mechanism which will allow it to share customer data in real time with the government. This has been described as a threat to privacy.[30][31]

Use of predatory pricing[edit]

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.[32]

Sending of unsolicited emails[edit]

In 2018, the company sent mass unsolicited job offer emails targeting senior- and mid-level employees of competitors.[33]

References[edit]

  1. ^ "OYO bets on large hotel portfolio, adds 12th 100 room hotel". Business Standard. 25 April 2018.
  2. ^ Raghunathan, Anu (1 August 2016). "Ritesh Agarwal Creates India's Largest Branded Network Of Budget Hotels With Oyo". Forbes.
  3. ^ "OYO is now world's third largest hotel chain; might go for IPO after three years". Financial Express. 10 July 2019.
  4. ^ "Hotel Unicorn Oyo Plots $300 Million Push Into the U.S. Market". Bloomberg L.P. 19 June 2019.
  5. ^ CHAUDHARY, DEEPTI (2 March 2018). "More room at the top". Fortune.
  6. ^ Jog, Natasha (6 August 2015). "At 21, He's the Mind Behind Multi-Million Dollar Start-Up OYO". NDTV.
  7. ^ CHATTERJEE, PARAMITA (16 May 2017). "How OYO's Ritesh Agarwal transformed the business of budget accommodation". Forbes.
  8. ^ "Oravel founder Ritesh Agarwal wins Thiel Fellowship". Mint. 10 May 2013.
  9. ^ Ghosh, Shona (22 September 2018). "Ritesh Agarwal: Interview with founder of Peter Thiel-backed Oyo". Business Insider.
  10. ^ Mishra, Aparna (12 January 2016). "OYO Rooms Goes International; Launches In Malaysia". Inc42.
  11. ^ "OYO expands international presence with hotel launch in Nepal". Business Standard. 27 April 2017.
  12. ^ Bhattacharya, Ananya (21 September 2017). "In trying to be the Indian Airbnb, OYO may be turning too cumbersome". Quartz Media.
  13. ^ "Unlocking Homes for Great Holiday Experiences". OYO Rooms. 15 September 2017.
  14. ^ Gooptu, Biswarup (18 March 2018). "OYO acquires Chennai's Novascotia Boutique Homes". The Economic Times.
  15. ^ "Oyo acquires Chennai-based Novascotia Boutique Homes to expand corporate offering". The News Minute. 19 March 2018.
  16. ^ Chaturvedi, Anumeha (18 October 2018). "OYO Hotels enters Indonesia". The Times of India.
  17. ^ Iyengar, Rishi (1 May 2019). "Indian hotel startup OYO is making a big move into Europe". CNN.
  18. ^ "India's Oyo hotel chain expands in Europe". BBC News. 2 May 2019.
  19. ^ Mundy, Simon (1 May 2019). "India's Oyo hotel chain buys @Leisure for €369m". Financial Times.
  20. ^ Chaudhary, Deepti (23 August 2019). "Oyo buys Las Vegas Hooters Hotel in its first US purchase". https://www.livemint.com. Retrieved 29 August 2019. External link in |website= (help)
  21. ^ Morris, Keiko. "India's Oyo Rolls Dice With Purchase of Las Vegas Hooters Hotel". WSJ. Retrieved 29 August 2019.
  22. ^ Rai, Anand (25 March 2015). "Oyo Rooms, raises $25M funding from Lightspeed, Sequoia, others". Tech Circle.
  23. ^ Chakraborty, Sayan (3 August 2015). "Oyo Rooms raises $100 million from Softbank, others". Mint.
  24. ^ Sharma, Samidha (16 August 2016). "Oyo Rooms closing $90million round in two tranches led by SoftBank". Times of India.
  25. ^ Gooptu, Biswarup (7 September 2017). "OYO secures $250M funding led by SoftBank Vision Fund and Hero Enterprise". The Economic Times.
  26. ^ Russell, Jon (12 September 2017). "OYO snags $10M strategic investment from hotel giant China Lodging". TechCrunch.
  27. ^ Shah, Aditi (25 September 2018). "Indian hotel chain OYO to raise $1 billion from Softbank, others". Reuters.
  28. ^ "SoftBank, others book a $5-billion room for OYO at unicorn club". The Economic Times. 26 September 2018.
  29. ^ Gooptu, Biswarup; Sharma, Samidha (14 February 2019). "Oyo gets $100M from China's Didi Chuxing". The Economic Times.
  30. ^ "Oyo Rooms wants to share digital record of your check-ins with government". India Today. 15 January 2019.
  31. ^ "Oyorooms with new concept of data sharing with government authorities". Indian people times. 16 January 2019.
  32. ^ Chaturvedi, Anumeha (1 December 2018). "Budget hotels teaming up to take legal route against Oyo". The Economic Times.
  33. ^ S.H., Salman (27 April 2018). "All's fair in talent war: Oyo targets staff at rivals". Mint.

External links[edit]

Official website