Winning Bizness Desk
Mumbai. From its humble beginnings as a startup to becoming a key player in the global hospitality sector, OYO has made a remarkable impact. Founded in 2013 by a 19-year-old Ritesh Aggarwal, OYO revolutionized the hotel industry by offering affordable, high-quality accommodations to budget-conscious travelers. Today, the company operates in over 800 cities across 35 countries, including India, China, Malaysia, Indonesia, and the UAE, making it a household name in hospitality. OYO’s story began in 2013 when Ritesh Aggarwal, then a young entrepreneur from Odisha, India, started the company with a simple idea—to provide affordable, standardized hotel rooms. Initially starting as an online marketplace for budget hotels, OYO rapidly evolved. By 2015, it had transformed into a full-fledged hotel chain, with franchises operating under the OYO brand. The company saw massive growth, thanks to its innovative approach of partnering with hotels, ensuring that customers received standardized services and amenities at lower prices.
The Man Behind the Success: Ritesh Aggarwal
Ritesh Aggarwal's journey is nothing short of inspiring. Born in Cuttack, Odisha, Aggarwal dropped out of college to pursue his entrepreneurial dream. By 2013, he had launched OYO, which quickly grew into a global enterprise. In 2020, he was recognized by Forbes as the "Youngest Self-Made Billionaire" with a net worth of $1.1 billion. His success story is a testament to his vision and perseverance, as OYO's valuation reached a staggering $10 billion by 2019. OYO operates on a business model that transformed the way hotels run. It partners with hotel owners, signs agreements with them, and lists their properties on its platform. The company then uses its technology to manage bookings, optimize room usage, and maintain quality standards across the board. This enables OYO to offer rooms at significantly lower prices than traditional hotels, while ensuring consistent quality.
Earns revenue by charging a commission
The company earns revenue by charging a commission—typically 22%—on bookings made through its platform. However, this rate varies depending on the services offered by OYO to its hotel partners. As the business expanded, OYO raised over $4 billion from investors, including global giants like SoftBank and Sequoia Capital, solidifying its presence in the hospitality market. What started as a small Indian startup has now become a global brand. OYO operates in multiple international markets and continues to expand. Its business model has evolved from being merely an aggregator to offering full-fledged franchise services, providing hotel owners with comprehensive management solutions. OYO’s innovative programs, such as "OYO Wizard" and "OYO Flagship," cater to both budget-conscious travelers and hotel partners, creating a win-win scenario. The company’s continuous innovation in the hospitality space ensures its relevance in an ever-competitive market.
In just over a decade, OYO has gone from being a small startup to a dominant player in the global hospitality sector. With its disruptive business model, focus on technology, and commitment to affordability, OYO continues to set new standards in the hospitality industry while offering travelers a comfortable and affordable stay worldwide.
