"OYO"- case study

OYO Rooms is an Indian hotel chain. It is  Founded in 2013 by Ritesh Agarwal. It is the fastest-growing hospitality chain of hotels & living spaces. OYO initially consisted mainly of budget hotels. The startup expanded globally with thousands of hotels, vacation & homes. and millions of rooms in hundreds of cities in India, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more.

While traveling across India, Ritesh realized that there are very few or sometimes no such hotels which provide the facilities and if provides, then is too costly which is not affordable by a middle-class person. Seeing all these he thought of to start OYO which at initial took 1 Lakh investment which he did invest but that 1 lakh in 2013 investment by him resulted in building an empire of $915 Million (as in 2019).

He started renting hotel rooms by providing them a monthly fee and then they decorate and renovate according to their need and even if in a month if 15 days visitors came in that room OYO stays in a situation of no profit no loss but the moment their booking is done for more than 15 days they are in a profit and this way they started it. Also sometimes they try to negotiate with the hotels to do all the requirements we will provide you customers and a profit margin.

The way OYO was in demand & was growing they even bought a company name zo which was doing the same thing in India & hence, this way becomes the only company to provide these facilities in India. They have expanded much and are doing too. As in 2019, OYO was among the top 3 apps for hotel booking globally.

The feature of early check-in give this model a different height and hence, OYO was the first hotel booking company which started providing Early check-in facility.

Their  Gross Margin in India increased from 10.6% in FY18 to 14.7% in FY19 indicating the strength of the business model and a positive correlation between market share and economics.

FY: Financial Year

The Net worth of Ritesh Agarwal according to HURUN GLOBAL RICH 2020 LIST is $1.1 BILLION.