Oyo Rooms

OYO Rooms

Company type	Private
Industry	Hospitality
Founded	May 2013 (2013-05)
Founder	Ritesh Agarwal
Headquarters	Gurgaon, Haryana, India
Area served	Worldwide
Key people	Ritesh Agarwal (Founder & Group CEO)
Services	Hotel booking, vacation homes, corporate stays, co-working spaces
Revenue	₹5,540 crore (US$640 million) (FY 2024)
Net income	₹290 crore (US$34 million) (H1 FY 2025)
Number of employees	1191 (February 2025)
Parent	Oravel Stays Limited
Website	www.oyorooms.com

OYO Rooms, stylised as OYO, is an Indian multinational hospitality chain headquartered in Gurgaon, Haryana, India. Founded in 2013 by Ritesh Agarwal, OYO operates a network of leased and franchised hotels, vacation homes, and living spaces across 80 countries and over 800 cities. Initially focused on budget accommodations, OYO has expanded into premium economy and corporate stays, managing over 43,000 properties and 1 million rooms as of January 2020. The company leverages technology for dynamic pricing, property management, and customer acquisition, positioning itself as a global leader in affordable hospitality. OYO's franchise-based model partners with hotel owners to standardise services while driving bookings through its app and website. Despite challenges like the COVID-19 pandemic, OYO has shown resilience with a profit of ₹290 crore (US$34 million) in the first half of FY 2025.

Founders & Leadership

Ritesh Agarwal is the founder and Group CEO of OYO Rooms. Born on 16 November 1993 in Bissam Cuttack, Odisha, India, Agarwal grew up in a Marwari family and showed early interest in coding and entrepreneurship. He attended Sacred Heart School and St. John's Senior Secondary School before moving to Delhi in 2011 for college. At 17, he backpacked across India, staying in over 100 budget accommodations, which inspired the idea for OYO. In 2012, he received a $100,000 grant from the Thiel Fellowship, allowing him to drop out of college and focus on his startup. Agarwal was listed among the top 10 youngest Indian billionaires in the Hurun Rich List 2024, with a net worth of ₹1,900 crore (US$220 million). He also appeared as a panellist on Shark Tank India (Season 3) in 2024.

Origin & Founding Story

Ritesh Agarwal, the founder of OYO Rooms

In 2011, at age 17, Ritesh Agarwal launched Oravel Stays, a budget accommodation platform inspired by Airbnb. After facing challenges in scaling Oravel Stays, he rebranded it as OYO Rooms in May 2013, focusing on standardising budget hotels. His travels across India revealed a gap in affordable, quality accommodations, prompting him to create a platform that partners with hotel owners to offer consistent services. Agarwal's selection for the Thiel Fellowship in 2012 provided a $100,000 grant, enabling him to refine his business model. OYO's early growth was fueled by partnerships with small hotels, leveraging technology for bookings and quality control. By 2015, OYO had expanded to 230 cities in India, marking the start of its rapid global expansion.

Timeline

Year	Milestone
2011	Ritesh Agarwal launches Oravel Stays, a budget accommodation platform.
2012	Agarwal receives $100,000 Thiel Fellowship grant.
2013	Oravel Stays rebrands to OYO Rooms, focusing on budget hotels.
2015	Expands to 230 cities in India with 70,000 rooms.
2016	Begins international expansion in Malaysia.
2017	Pivots to a full franchise model, ending aggregation.
2018	Raises $1 billion, led by SoftBank Group.
2019	Acquires @Leisure Group for $415 million and enters the US market.
2021	Files for IPO to raise $1.2 billion; faces Zostel legal dispute.
2023	Launches Super OYO and Spotless Stay programs.
2024	Raises $100–125 million at a $2.5 billion valuation.

Funding

Date	Round	Amount	Investors
November 2012	Seed	$600,000	Lightspeed Venture Partners, DSG Consumer Partners
March 2015	Series A	$25 million	Lightspeed India, Sequoia Capital, others
July 2015	Series B	$100 million	SoftBank Group
September 2018	Series E	$1 billion	SoftBank Group, Sequoia Capital, Lightspeed Venture Partners, Airbnb, Didi Chuxing
February 2019	Series E	$100 million	Didi Chuxing
October 2019	Series F	$1.5 billion	SoftBank Group, Lightspeed Venture Partners, Sequoia India
July 2021	Debt Financing	$660 million	Global institutional investors
June 2024	Series G	$100–125 million	Patient Capital, others
December 2024	Series G	$58.9 million	Red Spring Innovation Partner

Business Model

OYO Rooms operates a franchise-based model, partnering with hotel owners to standardise services under the OYO brand. It earns revenue through a commission-based structure, charging 20–30% of the gross booking value per transaction. The company also generates income from premium memberships like Wizard Blue, Silver, and Gold, which offer subscribers exclusive discounts. Additional revenue streams include advertising, brand promotions, and value-added services like breakfast and laundry. OYO's AI-powered pricing engine adjusts rates dynamically to maximise occupancy and revenue. The company targets budget travellers, millennials, and corporate clients, offering affordable accommodations through its app and website. By avoiding property ownership, OYO reduces operational costs while providing hotel owners with technology, marketing, and a global customer base.

Products / Services

• OYO Rooms: Budget hotels with standardised amenities for travellers.
• OYO Townhouse: Premium economy hotels targeting millennials.
• OYO SilverKey: Executive stays for business travellers.
• OYO Home: Vacation homes and short-term rentals.
• OYO Workspaces: Co-working spaces for professionals.
• OYO Collection O: Mid-range hotels with enhanced services.
• OYO Palette Resorts: Resort-style accommodations.
• OYO LIFE: Co-living and student housing solutions.
• Super OYO: Program to highlight hotels with superior customer service.
• Spotless Stay: Initiative for enhanced cleaning and hygiene standards.

Growth & Metrics

As of January 2020, OYO manages over 43,000 properties and 1 million rooms across 800 cities in 80 countries. The company's app has achieved 132 million downloads with a 4.5/5 rating. In FY 2024, OYO reported operating revenue of ₹5,540 crore (US$640 million), with a profit after tax of ₹290 crore (US$34 million) in the first half of FY 2025. Its Wizard Membership program has over 16 million members, reflecting strong customer retention. OYO employs 1,191 people as of February 2025, down 47.7% from the previous year due to cost-cutting measures. The company's valuation stood at $2.7 billion in August 2024.

Legal Entity Information

Field	Details
Legal Name	Oravel Stays Limited
Foundation Date	29 August 2012
Registrar of Companies (ROC)	ROC Delhi
Corporate Identification Number (CIN)	U63090DL2012PLC241770
Registered Address	Ground Floor-001, Mauryansh Elanza, Shyamal Cross Road, Satellite, Ahmedabad, Gujarat, India
Email ID	compliance@oyorooms.com
Company Status	Active
Directors	Ritesh Agarwal, Aditya Ghosh, others
Authorized Share Capital	₹1,500 crore (US$170 million)
Paid-up Capital	₹1,200 crore (US$140 million)

Acquisitions and Investments

• 2016: Acquired the team of Qlik Pass to establish its data science department.
• 2019: Acquired @Leisure Group for $415 million, expanding its European vacation rental portfolio.
• 2019: Purchased Innov8, a co-working space in New Delhi, for an undisclosed amount.
• 2019: Acquired Hooters Casino Hotel in Las Vegas with Highgate for $135 million.
• 2019: Acquired Danamica, a Copenhagen-based data science firm, for $10 million.
• 2025: Acquired MadeComfy, an Australian short-term rental platform, through OYO Vacation Homes.

Media & Public Recognition

OYO has received significant media coverage and accolades:

• 2018: Named India's second-most valuable startup by Quartz.
• 2019: Featured in Forbes Asia's 30 Under 30 list for Ritesh Agarwal.
• 2024: Recognised in Hurun Rich List for Ritesh Agarwal as one of India's youngest billionaires.
• Criticisms include a 2020 New York Times investigation into questionable practices like padding room listings and withholding payments, highlighting growth-related controversies.

FAQs

What is OYO Rooms?

OYO Rooms is an Indian multinational hospitality chain that operates a network of franchised hotels, vacation homes, and living spaces, offering affordable accommodations globally.

Who founded OYO Rooms?

OYO Rooms was founded by Ritesh Agarwal in 2013, initially as Oravel Stays, rebranded to focus on budget hotels.

How does OYO make money?

OYO earns revenue through commissions (20–30%) from hotel bookings, premium memberships, advertising, and value-added services like breakfast and laundry.

Where does OYO operate?

OYO operates in over 80 countries and 800 cities, with a strong presence in India, China, Southeast Asia, Europe, and the United States.

External Links

• Official Website
• LinkedIn
• X
• Facebook

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