OYO Unlisted Share

OYO Hotels & Homes is a renowned hospitality company that has revolutionized the hotel industry with its innovative approach to affordable and comfortable accommodations. Founded in 2013 by Ritesh Agarwal, OYO has rapidly expanded its presence across the globe, operating in over 80 countries and managing more than 1.2 million rooms. The business offers consumers the option to choose rooms and living areas that best fit their needs at an affordable price.

Timeline

2013: Opens first oyo in Gurugram

2014: Received Series-A funding

2015: Launch of oyo app Expanded to 100 cities and crossed 10000 rooms

2016: First overseas expansionin Malaysia Hit 1 million checkin for the first time

2017: Launch of oyo townhouse

2018: Expansion outside of Asia-UK Expanded to China and Indonesia

2019: Launched in US, Europe and Middle East

2020: Acquired @Leisure to enter vacation home business across 40 countries

2021: Launched OYO360, a self onboarding platform for patrons.

Business Model

Earlier Model: OYO’s initial business model was to pre-book hotel rooms at a discounted price then sell these rooms on their platform, usually at a higher price. Their revenue was the difference between their price and the price they sold the room for.

Current Model: Slowly OYO has shifted their focus from being an aggregator to managing the entire hotel property.

Oyo presently sells the complete inventory of hotels under its very own branding. This is beneficial for hotels, listed on the OYO platform gives them more traction and helps them acquire more business. And as commission Oyo charges 22% from its hotel partners.

 Global Presence

Funding Details

2015: $25 million from investors namely Lightspeed India, Sequoia, and others.

2015: OYO received $100 million in a Series C funding investor SoftBank.

2018: OYO got $800 million from SoftBank.

2019: OYO raised a total of $807 million from Ritesh Agarwal-led RA Hospitality Holdings and SoftBank in series F funding

2021: OYO’s latest funding has come from Microsoft in July. The firm invested  $5 Million.

Financial Summary

FY21, OYO's slaes peaked to ~13,000 cr. to record the highest sales ever with downward slopping losses. But the honeymoon period did not lasted for OYO as 2020 witnessed the rise of Covid 19 pandemic. In FY21 swiggy lost almost 2/3rd of it's previous year's sale and swiggy posted a loss three times higher than the previous year.

But despite of the tailwinds OYO started to witnssed resurgance in demand as Gross Booking Value (GBV) increased by 18% from INR 81,009.58 million in FY22 to INR 95,591.30 million in FY23 driven by an increase in storefronts and GBV per storefront per month for both hotels and homes. GBV per storefront per month increased by ~70% from INR 221,014 in FY22 to INR 375,723.8 in FY23 for hotels.

OYO's rapid expansion plan has bear fruits for them as almost 75% of the revenue is coming from their overseas operations.

Oyo Annual Report 2022-2023

Annual Report 2021-22