A Gurugram tech startup for hotels is available on your mobile and the famous name is OYO. Ritesh Agarwal founded this in May 2013. It is available in 200 cities of India. Its mobile app is very user-friendly and you can book a hotel room in seconds. Payments can be done online or offline.
It used to cover a total of 3 countries at present- India, Malaysia, and Nepal. Its mobile application was launched in 2013 with the website. It’s providing a facility of 7000 hotels covering 70, 000 rooms in total.
Investments and funding include 5 rounds starting from 2013 to 2016:
First, 4 rounds amount is undisclosed and the last round took place in Apr 2016, which was Series C. The funding was done by SoftBank including 4 Investors. The amount of funding is $200M. There are total 7 investors in these 5 rounds of funding.
It is having 1k-5k employees. In order to enhance its business, OYO Rooms acquired ZO Rooms on 10 Feb 2016.
Let’s have a look into its journey, ups and downs, and a famous success story.
OYO contains 7000 hotels with 70,000 rooms with different prices depending upon the facility a customer requires. It is giving a competition to many such businesses running in the market before its existence. Goibibo, Clear Trip, Makemytrip are the few examples which made their space in the market but OYO arrived and took a highlighting position with its awesome schemes and strategies.
Ritesh Agarwal, the CEO, came up with this idea at a very young age. He is a college drop-out like many other famous millionaires in history. In 2013, he came up with an idea of ‘OYO’ (On Your Own). He started with a single hotel in Gurugram having 14 rooms, in which OYO was giving service in 11 rooms. At the age of 17, he dropped out from his studies as he was having a clear idea of becoming an entrepreneur. He took admission in a Business and Finance School but mostly used to attend entrepreneurship programs: ‘The Thiel Fellowship for under-20 Entrepreneurs’. His main reason for success at very early age is his determination and smart work. He explored the path of success by making contacts and expanding his network. To start his career, he received an amount of $100K, which proved to be a great help.
How did the idea come up into the limelight?
He used to travel a lot. In his journies, he noticed that the hospitality provided by the hotels in India in not very good. Instead of complaining about the management system, he himself thought of changing it and creating an example. As it is said, change starts from you, he proved it right.
It started from a hotel and now it’s a big brand. His dream of becoming an entrepreneur has come true by his true efforts. It’s having a rating of 4.3 out of 5 from more than 1.1 Lac customers. This much trust is built in just past 4 years.
It’s an Indian e-commerce to break records and get profit in just 4 years of its establishment. A statement by Ritesh Agarwal, “No Indian traveler deserves to stay in those kinds of places, no matter what he pays. It is this trust deficiency that OYO is trying to combat”. The tagline of OYO Rooms says, “AurKyaChahie”, which shows the confidence of the service provided to the customers.
Competition in the market.
OYO is not the only one hotel service, although, it gained success and high profits. Its main competitor present in the market is ‘Makemytrip’, ‘Goibibo’ and ‘Yatra’. According to a report, MMT makes approximately 5000 hotel bookings per day. OYO promises you best experience at a reasonable price.
OYO Rooms appointed Anil Goel as a Chief Technology Officer. The leadership team will be under the assistance of Anil Goel. He worked as a Global Head of Technology in Amazon.com, who used to look after the customer returns and reverse logistic business. He joined OYO after 20 years of experience in the field of making software applications or technology infrastructure.
Talking about SURVIVAL.
The business strategy is all about making the things work in your favor.It’s not easy to thin of a business which already has many competitors in the market and already successful in their fields. In such a scenario, OYO showed up and hit the market with its good hospitality management. The main concern of Ritesh Agarwal is the hotel charges and the hospitality given to the customers. The companies which were present in the market were charging very high rates even for low-quality accommodations to the travelers. Therefore, he decided to start a service where people can come and enjoy their stay within affordable prices.
If a customer visits a hotel through OYO, he can avail a good discount as per the deal of the hotel with the OYO, comparative to the direct visit to the hotel.
According to a report, it is having 2.7 lakh subscribers on FB, 8,000 followers on Twitter and around 1.5 million downloads of the app from the store with a number of active users.
According to an article in Economic Times, the latest funding round closed at $250M through SoftBank Investor, and presently it is valued at $850M.
OYO and Its Aim.
While helping people in searching the places to live during their travel periods, it also promises a good hospitality at a reasonable price so that anyone can afford. It’s not only helping the customers but also giving opportunities to the hotel owners who are still hidden from the world, to enhance their business.
The Aim of the OYO:
- It has launched OYO cafe, OYO We for Women Travelers and OYO Premium for High-end users.
- Helps in creating great experiences for the customers as well as the hotel owners. This helps them in looking for the needs of the customers and fulfilling them, which ultimately increase their business opportunities.
- Helping hotels in building amazing experiences by helping them providing reviews of the customers. Therefore help them focus on their services.
Its connections with Airtel has helped in providing wi-fi facility in the hotels. The tie-ups have helped a lot in its success stories such as ZO Rooms, Thomas Cook, Air Pegasus and Tourism and Hospitality Skill Councils.
Campaigns run by OYO Rooms over social media for its fast growth:
- Dubsmash Contest
- #AurKyaChahiye videos
- Father’s Day campaign
- IPL Final Verbal Combat.
- Jai Hind
Hope you like the article. Don’t forget to share your views about the article as well as your personal experience with OYO Rooms.