OYO (company)

OYO (company)

OYO is a south East Asian hospitality company.

OYO is an online marketplace for finding hotels and places to stay for travelers. Founded in 2013 by Ritesh Agarwal, OYO aggregates and standardizes services offered by budget hotels and hostels across India. OYO Hotels and Homes operates India's largest network of hotels.

History

When OYO started, they aimed to solve the problem of standardization of hotel and stay experiences in India. Hotels on OYO are measured in 30 ways, including free wifi, breakfast, flatscreen TVs, spotless white bed linen and threadcount, branded toiletries and shower quality.

In 2019, OYO expanded their services to include OYO Rooms, OYO Collection O, OYO Townhouse, OYO SilverKey, OYO Capital O, OYO Palette Resorts and OYO Life. They launched their services and properties into overseas markets, including the Philippines, Indonesia, Japan, UK and Saudi Arabia. Their expansion included the United States, where they opened 112 hotels across 21 states and 60 cities by July 2019. Part of this expansion was a partnership with Highgate to open the OYO Hotel & Casino in Las Vegas. The casino is a rebranded Hooters Casino Hotel.

During this period of aggressive expansion, Ritesh Agarwal, founder and CEO, proposed a buy back of $1.5 billion of shares from early investors Sequoia Capital and Lightspeed. OYO acquired Danamica, a Europe based machine learning and business intelligence company who specialize in dynamic pricing. OYO suggested Danamica would increase the accuracy of their pricing. The acquisition, and Agarwal's buy back, pushed OYO's late-2019 valuation to $10 billion.

Funding

Series A

In March 2015 OYO raised $24 million. The round was led by Greenoaks Capital and included Sequoia Capital, Lightspeed Venture Partners and DSG Consumer Partners.

Series B

In August 2015 OYO raised $100 million. SoftBank led the round, which saw participation from Sequoia Capital, Lightspeed Venture Partners and Greenoaks Capital.

Series C

OYO secured $250 million in April 2017. The round, led by Softbank, saw participation from other existing investors Lightspeed Venture Partners, Greenoaks Capital and Sequoia Capital.

Series D

In September 2017, OYO raised $250 million through their Series D. Softbank led the round which included participation from Sequoia Capital, Lightspeed Venture Partners, Greenoaks Capital and Hero Enterprise.

Corporate Round

OYO, in September 2017, secured a $10 million investment from China Lodging (formerly known as Huazhu Hotels).

Series E

In September 2018, OYO raised $1 billion in funding. The round was led by SoftBank. Grab, an initially unnamed investor in the round, invested $100 million into OYO. Another confirmed investor of $100 million was Chinese ride-hailing Didi Chuxing. Airbnb was another confirmed investor, at $75 million. This round placed OYO valuation at $4.3 billion.

Timeline

September 2, 2019

OYO acquires Danamica

Danamica is an European data science company that specializes in dynamic pricing for vacation and hotel rentals.

April 1, 2019

Airbnb invests $100m in Indian hotel start-up Oyo

September 25, 2018

Series E

OYO has pulled in $1 billion in new funding. The majority of the funding was led by SoftBank’s Vision Fund with participation from Lightspeed, Sequoia and Greenoaks Capital.

September 7, 2017

Series D

OYO has raised $250 million in a Series D financing round led by SoftBank through SoftBank Vision Fund with participation from Sequoia India, Lightspeed Venture Partners and Greenoaks Capital and Hero Enterprise.

Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
OYO Series F round
1,500,000,000
3 Results
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People

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Further reading

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Date

Airbnb Eyes OYO, Indian Hotel Startup

Web

Documentaries, videos and podcasts

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Companies

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News

Title
Author
Date
Publisher
Description
Samreen Ahmad
November 24, 2020
@bsindia
Under Olive Residences, the Bengaluru-based company will be taking up existing residential buildings and hotels in partnership with owners for a performance-based management fee
Mihir Dalal
November 19, 2020
DealStreetAsia
The hotel aggregator's $10b valuation looks pricey.
Mihir Dalal
November 19, 2020
DealStreetAsia
The hotel aggregator's $10b valuation looks pricey.
Manish Singh
November 12, 2020
TechCrunch
A Y Combinator-backed startup that is helping major companies efficiently listen to how happy -- or unhappy -- their employees are and resolve their issues on time to retain talent just raised a new financing round from several high-profile executives. InFeedo, a four-year-old people analytics SaaS startup with headquarters in Gurgaon, said on Thursday it [...]
Press Trust of India
November 11, 2020
@bsindia
Read more about Travellers ready to step out; uptick in bookings for destinations: OYO on Business Standard. As India gradually unlocks, more and more people are now ready to step out to explore domestic destinations, and as per OYO's Diwali booking trends, Jaipur, Kerala, Goa, Visakhapatnam and Varanasi are among the top tourist spots.According to data
Press Trust of India
August 20, 2020
@bsindia
Amid a spurt in COVID-19 cases, the Bhubaneswar Municipal Corporation (BMC) has identified several OYO hotel rooms for paid isolation of asymptomatic patients.
Press Trust of India
August 4, 2020
@bsindia
The spokesperson said 12.5 per cent of the total 25 per cent salary cut will be restored from October and the remaining 12.5 per cent from December 2020
Aditi Shah and Anirban Sen | Reuters
April 29, 2020
@bsindia
The hospitality sector has been one of the worst affected by the coronavirus outbreak, with global and domestic travel coming to a near-halt
April 22, 2020
The Times of India
India Business News: Oyo on Wednesday informed employees that 25% of their fixed salaries will be cut and asked some staff to go on a 4-month leave with limited benefits f
Neha Alawadhi
April 22, 2020
@bsindia
OYO CEO for India Rohit Kapoor communicated the decision through an email to employees after a company townhall on Wednesday
April 13, 2020
Moneycontrol
The Ritesh Agarwal-backed company, once touted by Son to overtake the biggest hotel chains, has frozen operations across the world.
April 2, 2020
The Economic Times
Oyo has exercised its 'force majeure rights in suspending payments to the hotels.
March 30, 2020
Business Insider
Apollo Hospitals Group launched a new initiative -- Project Stay I -- in partnership with Zomato, Oyo, Lemon Tree Hotels and others -- to create quarantine facilities
Indo-Asian News Service
February 24, 2020
NDTV Gadgets 360
Oyo has said that it will introduce a bug bounty programme towards ensuring that there is a credible and continuous flow of positive feedback from independent security groups and individual researchers to mitigate against any bug or shortfall in the company's systems.
Peerzada Abrar & Neha Alawadhi
February 20, 2020
@bsindia
Profitability has been the biggest challenge for unicorns. Swiggy reported 500 per cent jump in losses for financial year FY19 at Rs 2,346 crore against FY18, according to data platform Tofler.
BS Reporter
February 19, 2020
@bsindia
The complaint against the two firms was filed Federation of Hotel and Restaurant Associations of India.
February 17, 2020
The Economic Times
Oyo, founded by 26-year-old Ritesh Agarwal, has drawn particular attention in SoftBanks portfolio of startups because of its similarities to WeWork.
Manish Singh
February 17, 2020
TechCrunch
Budget-lodging startup Oyo reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and pledged to cut down on its spending as the India-headquartered startup grows more cautious about its aggressive expansion. The six-year-old startup's growing revenue, up from $211 million in financial year ending March [...]
February 10, 2020
Tech2
"This is the first time I am doing an interview, but I have been open all throughout."
January 30, 2020
The Economic Times
Ghosh's elevation to the Oyo board seems as intriguing as it is perplexing.
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References

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