OYO is India’s hospitality unicorn which is giving the giants a run for their money. The company is backed by some of the major investors in the world. It is a company which has led the hospitality market in India since its inception. It was a first of its kind startup in India. The company managed to become a unicorn only five years into its existence. It founded by Ritesh Agarwal in 2013, only 19 at the time. Agarwal has high hopes from his company as it enters into a crucial period.
OYO, formerly known as Oravel Stays, has done immense business in India but not only this, it has done some great business outside of India as well. It is now present in more than 10 countries and is looking to expand further. The company has a strategy which works with almost all the countries and that is to work as it belongs to that country. This strategy has allowed them to grow even in China. The company has managed to win over the market there and in Indonesia with Dubai also not as bad.
That said, OYO has announced another $200 million for expansion in Indian and South Asian market. The company will use almost INR 1,400 crore to invest in these markets. Ritesh Agarwal, the founder of OYO says that the company does not want to target a small part of $3.6 trillion accommodation market but the majority of it.
The Indian unicorn has launched a STRATEGY 2023; it is the Indian company’s strategy to become the biggest hospitality company in the world. “We are committing over INR 1,400 Cr ($200 Mn) for technology investments, renovation, and managing investments for the calendar year, and will provide more, if needed, to help the team ensure continued economically efficient growth,” Ritesh Agarwal told the press.
The company has also launched Collection O hotels. This collection adds to its existing portfolio of the company. The company offers apart from Collection O are, OYORooms, Townhouse, SilverKey, Capital O, Palette Resorts.
The capacity expansion is the main focus of the company as the executives are going to focus the investments there. Customer experience is also something which will be upgraded by the company. Aditya Ghosh, CEO, India, and South Asia talked about the same. He said, “We believe great quality and repeat customers is the only long-term sustainable investment and hence, each of our brands including OYO hotels, Collection O hotels or OYOTownhouse are key in the years to come.” OYO believes that customer quality and customer retention is the future of this business. That is how the company will hit the breakeven point and will make for a greater company.
“Over 90 customer-facing campaigns run a month on month in South Asia, and our turnaround time across social media channels is 2.5 minutes. We believe great quality and repeat customers is the only long-term sustainable investment and hence, each of our brands including OYO hotels, Collection O hotels or OYOTownhouse are key in the years to come,” the CEO said.