Category- products And Services.
Headquarters- Gurgaon, Haryana.
Area served- Worldwide.
Key people- Ritesh Agarwal, Aditya Ghosh, Bejul Somaia.
Products- Oyo Rooms, Hotels, Homes.
Revenue- ₹ 6657 Crore (US$ 951 million) (2019).
Subsidiaries: Qianyu Islands, Weddingz.in, OYO Silverkey Innov8 & Coworking.
Number of employees- 17000 plus.
Oyo Rooms, founded in 2013 by Ritesh Agrawal, has rapidly evolved into a global hospitality giant headquartered in Gurgaon, India. This innovative startup has redefined the way people experience accommodations by offering thousands of hotels, vacation homes, and millions of rooms in over 80 countries worldwide. Oyo’s journey from a small beginning to a global hospitality powerhouse is a testament to its relentless commitment to excellence.
A Journey of Expansion and Innovation
Oyo Rooms embarked on its remarkable journey with a modest beginning:
- 2013: Oyo Rooms was founded, with its first property located at C68 South City 1, Gurgaon. The startup launched its customer-friendly website, oyorooms.com.
- 2015: Oyo introduced its mobile app for both Android and iOS platforms. By this time, Oyo had expanded its operations to 100 cities and proudly crossed the milestone of 10,000 rooms.
- 2016: Oyo set its sights on international expansion, beginning with Malaysia. This marked the startup’s first foray beyond Indian borders. Additionally, Oyo implemented dynamic pricing strategies to optimize its services based on seasonality, demand surges, and special events.
- 2017: Oyo launched its Townhouse service, catering to discerning travelers seeking an elevated hospitality experience.
- 2018: Oyo expanded its global presence by entering the UK, China, and Indonesia. The company also unveiled Oyo OS, a platform designed for property managers and dealers to streamline operations seamlessly.
- 2019: Oyo’s reach extended to the US, Europe, and the Middle East, demonstrating its commitment to becoming a global hospitality leader. In a significant move, Oyo acquired the @leisure Group, propelling it into the vacation homes business across 40 countries.
- 2020: Oyo Rooms celebrated a milestone as its app surpassed 50 million downloads worldwide. The company also initiated a comprehensive sanitization protocol for its hotels and homes in response to the COVID-19 pandemic.
- 2021: Oyo introduced OTA Powerplay subscription products and unveiled “Vaccine Aid,” a feature displaying the vaccination status of the hotel’s staff on the Oyo app. The Oyo app proudly crossed the 100 million downloads mark.
A Multifaceted Portfolio
Oyo Rooms offers a diverse range of products and services, catering to various customer segments:
- Oyo Townhouse: Positioned as a neighborhood hotel, Oyo Townhouse operates in the midscale segment, targeting millennial travelers seeking a personalized experience.
- Oyo Homes: Oyo’s home management system provides fully managed homes in various locations, ensuring a seamless and comfortable stay.
- Silver Key: This service offers rooms to corporate travelers on short or extended business trips.
- Capital O: Capital O provides reliable hotel booking services, focusing on comfort and quality.
- Collection O: Collection O is designed to offer booking and rental services tailored to the needs of business travelers.
- Oyo Life: Oyo Life targets young professionals searching for fully managed homes available for long-term rentals at affordable prices.
- Yo! Help: Yo! Help is a valuable tool offering support for check-in, check-out, and payment options, enhancing the overall guest experience.
Financial Milestones and Strategic Funding
Oyo Rooms’ impressive financial journey includes significant funding rounds:
- In September 2018, Oyo secured a substantial $1 billion in a Series E funding round led by SoftBank Vision Fund and Star Virtue Investment.
- February 2019 witnessed a $100 million investment from Chinese ride-hailing giant Didi Chuxing.
- October 2019 marked another milestone with a Series F funding round of $1.5 billion, led by SoftBank Group, Lightspeed Venture Partners, and Sequoia Capital India.
- In July 2021, Oyo Rooms successfully closed a debt financing round of $660 million from global institutional investors, addressing existing loans. Microsoft also expressed interest in investing in Oyo Rooms before its IPO, with the deal finalized in September 2021.
Continued Growth and Innovation
Oyo Rooms remains a trailblazer in the hospitality industry, continuously expanding its footprint and enhancing guest experiences. With a commitment to excellence, innovation, and global reach, Oyo is poised to shape the future of hospitality across the globe.
- Privacy Concerns (2019): Oyo faced criticism for planning to implement a digital register mechanism that would allow it to share customer data in real time with the government. This move raised concerns about privacy and data security.
- Predatory Pricing and Contract Violations: Oyo has been accused of engaging in predatory pricing practices and not adhering to its own agreements with hotel partners. There have been allegations of Oyo threatening hotels to unilaterally change contract clauses or withhold payments.
- Unsolicited Job Offers (2018): In 2018, Oyo garnered negative attention when it sent mass unsolicited job offer emails, specifically targeting senior- and mid-level employees of its competitors.
- Zo Rooms Acquisition Dispute: In November 2015, Oyo signed a term sheet to acquire Zostel’s Zo Rooms in an all-stock deal, which would have given Zostel’s founders and investors a combined 7% stake in Oyo. However, in October 2017, Oyo stated that the deal was called off, and Zostel claimed that the term sheet was binding. The dispute escalated, and former Chief Justice of India, A. M. Ahmadi, was appointed as the sole arbitrator. In March 2021, Ahmadi ruled that the term sheet was binding, and Zostel was entitled to execute the definitive agreements in the contract. Zostel later sought a stay on Oyo’s IPO in October 2021 but was rejected by the Delhi High Court in February 2022.
- Insolvency Proceedings (2021): In April 2021, the National Company Law Appellate Tribunal (NCLAT) initiated an insolvency resolution process against Oyo in response to a monetary dispute with a hotelier. While Oyo reported an 18% increase in revenue and a 45% reduction in net loss in FY22, this legal challenge added to the company’s woes.
Despite these challenges, Oyo Rooms continues to operate and expand its presence in the hospitality industry. The company’s journey has been marked by both remarkable success and controversies.
Financial Performance (FY22):
- In FY22, Oyo reported a significant increase in revenue, with a growth rate of 18%, reaching Rs 4,905 crore compared to the previous year.
- The net loss for the same fiscal year decreased by 45% to Rs 1,851 crore, reflecting efforts to improve profitability.
- Despite the positive trend, Oyo’s revenue in FY22 was still below its pre-COVID annual revenue of Rs 13,413 crore in FY20.
- Before the COVID-19 pandemic, Oyo had registered a substantial net loss of Rs 10,419 crore.
- Oyo Rooms has set its sights on an initial public offering (IPO) and is reportedly targeting early 2023 for the offering. However, this plan is contingent on the stability of India’s stock market and improvements in economic conditions.
- According to anonymous sources, Oyo is internally working toward a potential IPO in January, encouraged by a resurgence in demand.
- The company had initially filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise Rs 8,430 crore through an IPO in October 2021.
Q1 FY23 Performance:
- Oyo Rooms provided an update on its performance for the June quarter of FY23. It reported operating revenue of Rs 1,505 crore during this period and claimed EBITDA-level profitability of Rs 10.6 crore.
- The recovery of the travel sector in the June quarter led to an improvement in the company’s gross booking value (GBV) per storefront per month. It rose from Rs 2 lakh in FY21 to Rs 2.2 lakh in FY22 in the hotel business. In the June quarter, GBV per storefront per month increased to Rs 3.25 lakh.
- Employee costs for Oyo Rooms grew by 7% to Rs 1,862 crore in FY22 compared to the previous fiscal year.
- Marketing and promotional expenses increased by 27% from Rs 543 crore in FY21 to Rs 690 crore in FY22.
- Oyo’s founder and CEO, Ritesh Agarwal, received a remuneration of Rs 5.6 crore in FY22, marking a significant increase of 250% from Rs 1.6 crore in FY21. In FY20, his compensation was Rs 21.5 lakh
Nomination & Remuneration Committee
Nomination & Remuneration Committee, CSR
Dr.W. Steve Albrecht
Nomination & Remuneration Committee
Area Served- Worldwide