OYO is definitely on a roll. There is nothing that can stop this company from growing. It is not only winning in its hospitality business but is also winning in all ways and directions. The new ventures it is starting are turning out to be a hit. Every country it goes into embraces the company with both hands. The expansion in those countries is on another level with the company winning in every country it has been in.
All in all, OYO is on cloud 9 right now. The company is working on multiple new things into its hospitality vertical but there are limitations for that as well. The company has managed to find the right balance between handling its main vertical and new ventures. There was news where the company had acquired a co-working space startup Innov8. This hinted towards the company entering the co-working space as well.
That being said, the company has launched its co-working space in Gurugram. It has made its official entry into the vertical of co-working space. OYO has a touch of Midas, this is because whatever it touches is turning into money right now. The company has launched its co-working vertical in three categories. Two categories, Workflo and Powerstation will be mid-budget category working spaces while Innov8 will be premium category workspace.
Its first ever co-working space is coming from Pioneer Square complex in Gurugram. The seating capacity of the same will be around 500 and the prices will be in line with the amenities provided by OYO. This space will provide basic amenities such as Wi-Fi, printers/copiers, office supplies, IT help desk and more on these lines.
The prices of the same are not disclosed as yet but the company has promised that it will be something which the small stage companies can afford. Apart from this, the company is planning to expand in other areas of the country. Bangalore, Mumbai, and Hyderabad are its next destinations. The company is going to expand to these cities not next year but in 2019 itself.
The hospitality company has a lot of money to burn as it was bulked by around $1 billion not so long ago. It then partnered with Airbnb which earned them around $200 million. The money is there to burn, it is about execution. India being a startup-friendly country, co-working spaces will be a hit and there will be competition as well.
The direct competitors of OYO are New-York based company WeWork, Awfis which is backed by Sequoia Capital, 91springboard, and many such companies. However, OYO might not be worried about these companies as it is going to be ruthless and also has more cash to burn and all these companies combined. It will be interesting to see how this venture of OYO turns out to be.