OYO CASE STUDY

OYO CASE STUDY, FOUNDER, FUNDING, REVENUE, INVESTORS, BUSINESS MODEL

Founders and CEO : Ritesh Agarwal

Ritesh Agarwal is the founder of the OYO company  “the largest hotel chain in the world”. 

OYO BUSINESS MODEL AND STORY BEHIND THE IDEA

Ritesh is from Rayagad district of odisha state,India. he grown up in front of the broader Indian startup ecosystem. initially Ritesh wants to be a airline pilot but one of these day’s his elder sister who went to an engineering college came back and said she had gone to the “Entrepreneur fest“. he don’t even know this word this was new to him, so he searched about the word name in Oxford dictionary and he found out  ” Somebody who want to solve a problem and make’s a business along with it”. Once in a class, teacher asked  him what do you want to be when you grow up? he said i would be an entrepreneur. he just try to being a nicer kid in the class and everyone is asking him ” its sound’s like a nice  word, what does it mean”. that’s where the first time he got inspired to say that doing something gives respect because people tell you that wow you are doing something different.

For college he went to Kota. he used to take weekend train from Kota to Delhi and attained lots of conferences and listen to entrepreneurs. he was inspired by a one of entrepreneur Rahul bhatia of inter Glob, they are building fundamental amazing consumer product. the reason why he found them innovative, he felt that the very few Indian consumers product that you take to any part of the world  and it would not fell out place and he felt Royal Enfield and Indigo companies are like this. so he moves to Delhi and work’s for some entrepreneur for  one and half year and also giving his college exam’s at Kota.

These dream lead him one day to apply to the ” Thiel fellowship“. Peter thiel gives $100,000 to young people who want to build new things across the world with a condition of you should drop the college. Ritesh drop the college and became the “1st Asian resident to become a Thiel fellow“.

In 2014 after coming back to India from US, he realized that in word wide there is no hotel chain in the less than 100 room segment and there is 90% hotel assists world wide. which are less than 100 room’s. So he sported the hotel problem.

Ritesh first started Oravel just like airbnb but it did not work. along with lot’s of the home owner became friends. for three and half mounts every day he stayed at a new home, at that point of time he saw there is a big opportunity of small hotel which people can franchise lease and use technology to operate very efficiently. that got him started. OYO founded on May 21,2013.

 

FUNDING AND INVESTERS

Total valuation of OYO is $10 billion.

Funding received:

April 2014: $650k  led by Lightspeed and Sequoia.

March 2015: $25 million in series A led by Greenoaks and Lightspeed.

July 2015: $100 million in Series B led by Softbank, Sequoia, Lightspeed and Greenoaks. 

April 2016: $100 million in Series C led by Softbank, Sequoia , Lightspeed and Greenoaks.

Aug 2016: $ 61.7 million led by SoftBank

April 2017: $150 million in Series C led by Softbank, Lightspeed , Sequoia and greenoaks.

Sep 2017: $250 million in Series D led by Softbank , lightspeed , sequoia and greenoaks.

Sep 2017 :$10 million in Series D.

Sept 2018: $800 million in Series E led by Lightspeed , sequoia, greenoaks.

Feb 2019: $100 million in Series E led by Didi, softbank, airbnb.

Oct 2019 : $700 million in Series F 

 

Existing Investors:

Soft Bank group, Light speed Venture partners, Sequoia India. Greenoaks, Didi, Airbnb and others.

DISCOVER

Number of employee: 1001-5000.

Rooms: 1.2 million

OYO China:

Rooms: 590,000.

Cities: 332.

OYO U.S:

States: 21

Cities:60

OYO also aquired the Hooters Casino Hotel LasVegas.

 

OYO ANNUAL REVENUE

 

OYO REVENUE: $216.2 million 

COMPETITORS

 TREEBO, FABHOTELS, ZEN ROOMS, VISTA ROOMS, REDDOORZ,TRIVAGO, YATRA, BOOKING HOLDINGS, EXPEDIA AND CLEARTRIP.

ACQUISITIONS

OCT 2019: $100 million MDI.

SEP 2019: $10 million DANAMICA.

AUG 2019: $135 million HOOTERS.

MAY 2019: $415 million @LEISURE.

MARCH 2019: $30 million in IANOVA.

AUG 2018: WEDDINGZ.IN

JULY 2018 : ABLEPLUS

MARCH 2018: NOVASCOTIA

 

APP

app is easy to use, you can book room in just 3 steps:

1. select location

2. select oyo u liked

3. select payment mode

SERVICES

 

OYO TOWNHOUSE

OYO HOME

OYO VACATION HOMES

SILVER KEY

CAPITAL O

PALETTE

COLLECTION O

OYO LIFE 

Thanks for reading

OYO CASE STUDY, FOUNDER, FUNDING, REVENUE, INVESTORS, BUSINESS MODEL

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