OYO Rooms

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Oravel Stays Private Limited
OYO Logo.png
Type of businessPrivate
Founded2013; 6 years ago (2013)
Headquarters
Area servedIndia, Nepal, China, Singapore, England, Malaysia, UAE and Sri Lanka
Founder(s)Ritesh Agarwal
IndustryHospitality
RevenueIncrease 2,600 crore (US$360 million) (2017)[1]
Net incomeIncrease -325 crore (US$−45 million) (2017)[1]
Websitewww.oyorooms.com
Current statusOnline

OYO Rooms, commonly known as OYO, is India's largest hospitality company,[2] consisting mainly of budget hotels.[3][4][5] It was founded in 2013 by Ritesh Agarwal and has since grown to over 8,500 hotels in 230 cities in India, Malaysia, UAE, Nepal, China and Indonesia.[6][7][8][9]

History[edit]

In 2012, then 18-year-old Ritesh Agarwal, hailing from Odisha's Rayagada district, launched Oravel Stays, a website designed to enable listing and booking of budget accommodation. 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.[citation needed][10]

OYO partners with hotels to give similar guest experience across cities.[11] Shortly after launching Oravel Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel Fellowship from Peter Thiel.[12]

In March 2015, OYO raised Series A round of funding $24 million from Lightspeed Venture Partners, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners.[13] In August 2015, OYO raised another $100 million from Softbank Group, a existing investor.[14] A year later, in August 2016, OYO raised $90 million from Softbank Group, Innoven Capital and existing investors.[15] In September 2017, OYO announced it had 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.[16] China Lodging made a strategic investment of $10 million in OYO in September 2017.[17]

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, Pondicherry, Udaipur, Kerala etc. In April 2018, OYO launched its first international OYO Home in Dubai.[18][19]

In September 2018, OYO raised $1 billion. The majority of the funding — $800 million, to be exact — was led by SoftBank’s  Vision Fund with participation from Lightspeed, Sequoia and Greenoaks Capital. OYO said there is also an additional $200 million that has been committed from as-yet-unnamed investors. The deal values the five-year-old company at $5 billion. Oyorooms came with new cocept of data sharing of staying customer with government authorities.[20]

Recent issues

OYO rooms were in multiple Indian news in September 2018 after a sexual harassment claim was made by US citizen Jordan Taylor. She had allegedly claimed that she was provided an unsafe accommodation by OYO in Delhi where she was sexually harassed by OYO hotel staff. [21][22]

OYO has been in news for using predatory pricing using it's funding money to unfairly remove competition. It was also reported that OYO was not following its own agreements and have threatened the hotels to unilaterally change some of the clauses or suffer the consequences of non-payment.[23]

Oyo Rooms had sent mass unsolicited job offer emails targeting senior- and mid-level employees of competitor companies.[24]

It was reported by Business Standard in 2017 that OYO rooms were making massive losses without showing any significant revenues.[25]

References[edit]

  1. ^ a b "Oyo Financial". Business Standard. Retrieved 28 February 2018.
  2. ^ "OYO bets on large hotel portfolio, adds 12th 100 room hotel". The Economic Times. Retrieved 6 September 2018.
  3. ^ Dhar, M. (2016). Brand Shastra: Use the power of marketing to transform your life. Penguin Books Limited. p. pt129. ISBN 978-93-86057-21-1. Retrieved January 27, 2018.
  4. ^ "Ritesh Agarwal Creates India's Largest Branded Network Of Budget Hotels With Oyo". Forbes. Retrieved 2016-01-08.
  5. ^ Zakaria, N.; Kaushal, L.A. (2017). Global Entrepreneurship and New Venture Creation in the Sharing Economy. Advances in Business Strategy and Competitive Advantage. IGI Global. p. 121. ISBN 978-1-5225-2836-4. Retrieved January 27, 2018.
  6. ^ "More room at the top". Fortune India. Retrieved 2018-09-06.
  7. ^ "At 21, He's the Mind Behind Multi-Million Dollar Start-Up OYO". Retrieved 2015-08-25.
  8. ^ "OYO Rooms Goes International; Launches In Malaysia". Retrieved 2016-01-12.
  9. ^ India, Press Trust of (2017-04-27). "OYO expands international presence with hotel launch in Nepal". Business Standard India. Retrieved 2017-05-26.
  10. ^ "How OYO's Ritesh Agarwal transformed the business of budget accommodation". Forbes India. Retrieved 2018-12-22.
  11. ^ "How OYO's Ritesh Agarwal transformed the business of budget accommodation". Retrieved 2017-05-16.
  12. ^ "Oravel founder Ritesh Agarwal wins Thiel Fellowship". Retrieved 2013-04-07.
  13. ^ "Oyo Rooms, raises $25M funding from Lightspeed, Sequoia, others". Retrieved 2015-03-25.
  14. ^ "Oyo Rooms raises $100 million from Softbank, others". Retrieved 2015-08-03.
  15. ^ "Oyo Rooms closing $90million round in two tranches led by SoftBank". Retrieved 2016-08-16.
  16. ^ "OYO secures $250M funding led by SoftBank Vision Fund and Hero Enterprise". Retrieved 2017-09-17.
  17. ^ "OYO snags $10M strategic investment from hotel giant China Lodging". Retrieved 2017-09-12.
  18. ^ Bhattacharya, Ananya. "In trying to be the Indian Airbnb, OYO may be turning too cumbersome". Quartz. Retrieved 2018-05-04.
  19. ^ "Unlocking Homes for Great Holiday Experiences - Official OYO Blog". Official OYO Blog. 2017-09-15. Retrieved 2018-05-04.
  20. ^ "Oyorooms with new concept of data sharing with government authorities". 2019-01-16.
  21. ^ "American's video claims harassment in Delhi hotel - Times of India ►". The Times of India. Retrieved 2018-11-26.
  22. ^ "US Travel Blogger Recounts Horror Story About Being Stalked, Harassed and Trapped in Delhi OYO Room". News18. Retrieved 2018-11-26.
  23. ^ "Budget hotels teaming up to take legal route against Oyo - The Economic Times". m.economictimes.com. Retrieved 2018-12-01.
  24. ^ S.H., Salman (2018-04-27). "All's fair in talent war: Oyo targets staff at rivals". https://www.livemint.com/. Retrieved 2018-11-26. External link in |work= (help)
  25. ^ Krishnan, Alnoor Peermohamed & Raghu (2017-07-29). "Oyo losses cut to Rs 325 cr, revenue still a secret". Business Standard India. Retrieved 2018-11-26.