OYO is blooming like a lotus at this moment. It is making into the newspapers for all kinds of reasons. One day the newspaper reports about its fight with the hotels in India and the next day they report about its expansion in some foreign country. It is outstandingly weird for common people to understand the success of OYO. The Indian company, which is founded and owned by a 24-year-old Ritesh Agarwal, has come leaps and bounds since its inception. It has managed to outgrow every company in this business.
The expansion of the company is extravagant by all means. No company has managed to do what OYO has done in China. It has disrupted the entire market and is the only company to work its way around all the Chinese government policies. There is a reason for that as well. If we listen to Ritesh Agarwal carefully we understand why OYO managed to stay in China while major companies couldn’t. That is because OYO believes in localization. It does not outsource anything to India or any other country, the entire OYO China functions from within China and that is the reason for its massive success in the country.
That said, Agarwal’s OYO recently left its footprints in the Philippines and are expanding at a rapid rate in the Asian country. It already has conquered the biggest market in Asia; China. Point made, the company has now entered the Indonesian market. It has already begun its operations and is present in the Asian country since October 2018. The company started with only 30 properties in Indonesia. It targeted the major cities first; Jakarta, Surabaya, and Palembang.
As of today, it is present in 16 cities and owns almost 150 properties on the Indonesian soil. The growth of OYO in the last few months is staggering. It has grown five-fold in the last three months and is now going to pump in another $100 million which is around INR 711 crores in the group of Islands. It plans to enter 100 more cities in the next eleven months with Bali being its goal.
Their strategy is similar to that in China. It acts and thinks like an Indonesian company and that helps them grow and not only but also grow at a rapid pace.
The company also strives for class and ratings. None of their properties, in any country, have a poor rating. It is a rare case that OYO’s property was rated badly by a customer. In Indonesia, the case is even stronger. Over 70% of their hotels and properties are rated about eight. This fact was revealed by Rishabh Gupta, who happens to be the head of functions in Indonesia.
OYO is backed by Softbank and other major investors such as Lightspeed India, Hero Enterprise and many more.