Startup Story of OYO – OYO, the biggest hotel giant in India, is a start up of Ritesh Agarwal. He started his business when he was just 21 year old. Hotel giant company is not a hotel chain business in the country but it all started with tie ups with the existing hotels, all big and small. Presently, Oyo has dominated it’s kind of market and is ruling with no similar big competitor around.
Oyo is the fastest growing branded network of hotels online and offline in India. The idea of starting this venture popped up to the founder because Ritesh always found it difficult to get budgeted hotels anywhere while travelling. This is how Oyo was born and this is what Oyo stands for.
Startup Story of OYO
Ritesh has travelled all over the country and got these problems throughout. And to tackle this problem, he at the age of 17, launched Travel travels which was modelled after Airbnb. It was Oravel travels itself that has become Oyo rooms now. Being a travel enthusiast, Ritesh found that India misses having quality hotels at budgeted prices.
The lack of these kills the enjoyment of the entire trip. He created an online social community that talked about all the good places to stay within the country and shared information about that. He relaunched Oyo rooms in 2013.
The intent of creating Oyo rooms was to create the largest Indian hotel chain efficient, young, standardized room that would be budgeted.
For this, Oyo rooms started reaching out to the hotels and started networking for increasing their presence in various hotels. Their business model is to partner with the hotels and offer room through Oyo rooms service.
For example, a hotel called XYZ has 10 rooms with a partnership of 4 rooms with Oyo, people can book those 4 rooms at Oyo rooms price in the XYZ hotel. With time, they kept on increasing their partnerships with a lot of hotels in various parts of the country.
Startup Story of OYO
With time, they started having funds and investments as well. In 2014; the company raised Rs. 4 Cr from Lightspeed Venture Partners & DSG Consumer Partners, at a pre-money valuation (valuation of a company prior to investment or financing) of Rs 14 Cr. Oyo has its presence in over 700 hotels in more than 60 cities of India. Oyo has also raised another $25 Millions from Lightspeed, Sequoia and others.
Oyo has their mobile app and their official website as well. People could simply book from these platforms online in any hotel of their choice in any part of the country where they are available.
They have their easy booking facility available through these platforms. They have also grown to have their own Oyo townhouse, Oyo silver key, and Oyo home.
Startup Story of OYO – They have also launched in various parts of Asia now like in Nepal, Indonesia, China, Malaysia, and UAE. So, it is just not an Indian brand as of now but also an international growing brand.
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