OYO – The initial journey of Oravel Stays
OYO is the 3rd most renowned hotel supply chain across the world with over 23,000 hotels, 850,000 rooms, and over 46,000 vacation homes. With over a 360-crore current valuation, it has reached the top. Almost all Indians have at least heard its name or more likely to have seen one. So, you must know how popular it is. But do you know the journey behind it?
The initial journey of Oravel Stays:
OYO’s founder Ritesh Agarwal started his first venture “Oravel Stays” in 2012 and it was a simple aggregator of bed and breakfast stays across India. In a few months, he managed to receive funding of 30 lakhs from Venture Nursery which was an accelerator firm that had brought together multiple investors for nurturing startups.
After some months he had even presented his idea to the Thiel Fellowship where he managed to receive a funding of $100,000 over 2 years which amounted to 2.7 lakhs per month. After collaborating with different co-founders and separating from them, he realized that the Oravel Stays needed a transformation.
The transformation to OYO rooms:
He was reminded of accommodation issues that he had faced previously while traveling to different places and realized that due to availability issues, people used to stay in unfurnished hotels with bad service. To solve this problem, he tweaked his business model a bit in 2013 and launched Oravel Stays as OYO Rooms.
In 2014 OYO Rooms had raised a funding of 4 crores Lightspeed Venture Partners (LSVP) and DSG Consumer Partners at a pre monthly valuation of 14 crores. The company started gaining fame and raised bookings of more than 1 crore.
Funding received recently:
OYO Rooms had received a funding of $1 billion in 2018 and in 2019, Ritesh Agarwal had bought $2 billion shares in his company that resulted in tripled shares.
In 2020, Ritesh’s net worth is around INR 7253 crores that have made him the world’s fastest self-made billionaire. OYO Rooms has received total funding of $3.3 billion in multiple funding rounds. So even in spite of multiple setbacks, it is now one of the top 3 hotel chains across the world.
Moreover, OYO Rooms has been evolving rapidly with even advanced room booking features at present in the application that keeps up with the changing needs of the customers. Hence the user base is increasing massively every day with over a 50million downloads on Google Playstore itself!
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