International Business Case Study

OYO ROOMS
 Success Story – Mr Ritesh Agarwal

• Ritesh was born to a business class family in Bissam

Cuttack in Orissa
• He even started writing a book and ended up inscribing
– ‘Indian Engineering Colleges: A Complete
Encyclopedia of Top 100 Engineering Colleges’.
• Ritesh was chosen among the 240 children to be a part of
the Asian Science Camp held at the Tata Institute of
Fundamental Research (TIFR) in Mumbai.
• he started his first venture in 2012 – Oravel Stays! It was
an aggregator of bed and breakfast stays across India.
 Oravel Stays to OYO Rooms - 2013

• In a matter of no time, he also secured funding of Rs 30

lakhs from VentureNursery, an accelerator firm which
brought together a bunch of storied investors to nurture
start-ups.
• Thiel Fellowship – a global contest intended for students
under the age of 20. He managed to reach amongst the
top ten winners who received a sum of $100,000
• The idea of Oravel stays(2012) came from he staying in
PG’s, yet wanted good food and hotel services.
Current Position and valuation

• Grown to over 8,500

hotels in 337 cities in
India, Nepal, Malaysia,
China and Indonesia.
• In August 2015, OYO
raised another $100
million from Softbank
Group, a existing investor.
 OYO’s success in India

• March 2015 to September 2017-

Raise funds from different sources.

• Late 2017-
Launched OYO Home

• September 2018-
Raised $1 billion
Concept of data sharing with government authorities
 International Expansion in 2016-2017

• MALAYSIA- First entered in South East Asian market

with launch in Malaysia,2016.
• Its network in Malaysia is claimed to be 200 hotels.

• NEPAL- Online hotel aggregator entered Nepal in its

second foray overseas with launch of hotel in
Kathmandu, 2017.
• 174,803 tourists visited Nepal.
 Recent International Expansion
• INDONESIA-It has already opened 1,000 rooms at 30 hotels in
Jakarta, Surabaya and Palembang and plans to expand into 35 cities in
Indonesia by late 2019.

• UAE – OYO began its operations with 1.1K rooms in Dubai, Sharjah
and Fujairah. The development comes at a time when Dubai is
preparing for hosting the World Expo 2020.

• SAUDI ARABIA- The company has partnered with 50 hotels in seven

cities for the launch. OYO plans to expand to 17 cities across 6
provinces by 2020.

• PHILIPPINES- OYO is currently present across Metro Manila,

Tagaytay and Cebu in the country. It plans to establish a presence
across 10 new cities by 2020.
 Recent International Expansions
• CHINA- Operations commenced since November, 2017 with
11,000 exclusive rooms across 26 cities. It now vouches for
180,000 hotel rooms in China across 265 cities. The hotel chain
currently employs 1000 people in China.

• EUROPE- OYO started with London in September,2018. with

four properties in London that would offer about 80 rooms, OYO
plans to take the number to more than 5,000 rooms by 2020.

• JAPAN- On 21st February, 2019, OYO Hotels and Homes

announced the commencement of its operations in Japan through
a joint venture with Yahoo Japan Corporation (Yahoo! JAPAN) to
form OYO Technology & Hospitality Company, Japan.
 Future Prospects

• OYO today has presence in more than 500 cities across 10

countries and it aims to become the world's largest hotel chain
by 2023.
• Mr. Ritesh Agarwal says, “if we just keep opening 50,000
keys a month, then by 2023 we would have opened roughly
2.5 million more rooms, which will be at least 2 times of what
the world's largest hotel chain is today.”
• Focus is on 3 areas:
1. capital expenditure in assets for the renovation of properties,
2. training and staffing facilities, and
3. bringing in a solid management team to operate these asset
areas really well.
OYO Silently Adds A New Vertical To
Its Hospitality Empire
• OYO has tied up with
Zomato, Swiggy and
UberEATS .It is a pilot
project in Bengaluru and
Delhi-NCR .OYO was in
talks to acquire FreshMenu.

• A new product by OYO in

the foodtech sector — OYO
Food. The app, available on
Google Play Store and
works as an intermediary
for food and beverages
vendors who want to
deliver to the associated
hotels of OYO.
OYO’s Operations
Amenities
OYO Hotel Identification
Signature Room Setup
THANK YOU