Today we are going to discuss Amazing and my favorite startup OYO known as (On Your Own Rooms).
Things you are going to know in this blog:
- Business Model of OYO & about Ritesh Agarwal
- Journey of OYO
- How Oyo started?
- How you can grow your business by using the strategies from the OYO case study.
Business Model of OYO and About Ritesh Agarwal
Oyo Rooms (stylised as OYO), also known as Oyo Hotels & Homes, is an Indian hospitality chain of leased and franchised hotels, homes and living spaces.
There are lots of thing to learn from oyo because in 7 Year
- Agarwal was the youngest in the list last year when his net worth was Rs 7500 crore.
- He was the second in the list of wealthiest startup founders in 2019.
- The self-made billionaire was praised by US President, Donald Trump when he was visiting India earlier this week
In the age of 26 years
Date of Birth of Ritesh Agarwal is 16 November 1993
So, Image the young boy build his Hug empire, In 2019 OYO has over 13,000 franchised and leased hotels, and over 450,000 rooms, adding over 64,000 rooms every month, globally.
“In India, we have over 8,700 leased and franchised hotels, and more than 164,000 rooms,” a company official said.
Let’s see the
Journey of OYO
|Founded||2013, 7 years old|
|Headquarter||Gurgaon, Haryana, India|
|Area served||Asia, Europe, and America.|
How Oyo started?
Now, in quick I am going to tell you full case study on OYO from starting of it.
OYO was, founded seven years ago at age 19 by Mr.Ritesh Agarwal, his main motive was to create great living spaces for the common man.
- 2011 Mr Ritesh Agarwal, an 18-year-old college dropout, seemed to dreams of entrepreneurship which compelled him to take the plunge with his first start-up Oravel. Oyo launched in Gurgaon, Haryana, India.
- 2013 Mr Ritesh Agarwal was selected forTheil Fellowship which gave him funding of around 100,000.
- 2014- In August of this year, Oyo received its first Series A funding.
- 2015- Oyo received its series B funding of around $25 million. Then Oyo bagged $ 100 million in series round C of funding from Softbank.
- 2016- Oyo the hotel chain hit 1 million check-ins mark.
- 2017-Launched a Business In Nepal.
- 2018- Established operations in UK, UAE, CHINA, and INDONESIA. Become a unicorn in September 2018.
- 2019- Oyo makes more than 330000 rooms in 500 cities globally.
Funding for OYO from starting
In 2011 Ritesh Agarwal took the plunge with his first start-up Oravel. he is selected for thiel fellowship which gave him funding of $100,000 dollar.
2014 in August this year oyo received its first series of funding. in 2015 in March oyo received funding of a whopping amount of 25Million dollar. in the same year,
2015 oyo App was Launched followed by massive expansion. again in the same year 2015 July, OYO bagged 100 Million dollars in series C round of funding from Softbank.
2016 in January the hotel chain hit the 1 Million check-ins mark and also lunched in Malaysia,
In 2017 continuing its expansion, oyo launched a business in Nepal.
In 2018 established an operation in many countries,
In 2019 it has more than 330,000 rooms in 500+ cities globally.
You can grow your business by using the strategies from the OYO case study.
- #1.Asset light strategy
- #2.End to end responsibility for customers’ experience.
- #3.Predictability will bring repeatability.
- #4.Technology for speed and scale.
- #5.Focus team for acquisitions and Expansion
- #6.Feedback to feedforward
- #7.Lowest attrition with continuous training.
Here I will tell you 7 most effective strategies In detail
- Asset light strategy
See what they did; they focus on the unbranded hotels and make a plan for making their branded ecosystem.
customers want great quality, low prices, and the best location.
So, they did focus on the best location.
They want hotels near the mall, railway station, airport, or corporate hub.
And then they focus on hotels that have less than 100 rooms.
He didn’t invest his money to build a hotel.
He did a partnership with existing hotels. And give on delightful, great, and good consumer experience.
Actually, this is called the aggregator business model.
In this model, Oyo gives their name to other smalls hotels and provides uniform, quality, price, standardization, and providing staff training with a well.
- End to end responsibility for customers’ experience.
According to these strategies, they assure that from starting till the end they make their customer happy, now the question is how?
Oyo give assurance to all the hotel owners that they will take care of all the mandatory things like
#1.ease of hotel search
#2.easy of booking
#4.check- out easy
#5.world class experience
and then they invested money in the services.
- Predictability will bring repeatability
According to this strategy, they observe all the profitable factors, and then they repeat it.
and that is way customer can predict that in Oyo they serve good bedsheet, AC, wi-fi, breakfast, cleaning, washroom,
and that’s the reason customer comes repeatable.
So, basically, they made affordable, predictable, and available everywhere.
But they don’t have speed and scale.
- Technology for speed and scale.
They this fact that if you want to do something big, then they have to accept technology.
They made one mobile app for room booking; it is like 3 clicks, 5 seconds, and room booked.
And by using the technology, the control customer experience, operational capability, and efficiency.
And for that, they made their data science team they invest their money in innovation.
They do mainly focus on technology, the internet of things, machine learning, artificial intelligence.
- Focus team for acquisitions and Expansion
So basically thesis the separate team for dealing with owners and expand the business.
They do all work digitally; that is the reason they are a fast mover.
this is the only reason Oyo takes the place of other hotels speedily.
They do all the works by using their own internal app.
Other hotels do their work in 8 months, and they do the same work in 8 days.
- Feedback to feed forward
They work on customers’ feedbacks.
Oyo always put customers’ feedback as a priority.
They build systems like if custom having any issue, then they can directly inform their manager.
Customers registered their complaints now, customers like this technology.
- Lowest attrition with continuous training.
For running all that technical system, they must require a human element.
Now Oyo started giving training to their employees for doing proper work.
That is why Oyo made their own 25 skill institute.
they always check 5 skills before hiring any employee
# leadership skills.
also read this If you are willing to How to start business from scratch
If you want to know the mindset of billionaires to start business then read this Business mindset
DID you know Why Nokia Failed?
OYO Rooms stands for On Your Own Rooms. It is India’s largest hotel network which is spread over 199 cities. It is headquartered at Gurugram in Haryana.
Gurugram-based hospitality unicorn OYO has raised $806.75 Mn funding from existing investors SoftBank and founder Ritesh Agarwal owned RA Hospitality Holdings. The investment is the first tranche of $1.5 Bn Series F round, which was announced in October 2019.
Mr. Ritesh Agarwal is founder and CEO of OYO.
No, In starting OYO does not have its own Hotel now they buy some hotels and many of in lease.
Yes OYO rooms are reliable because they are working on providing quality room in the low budget they grow very fast with achieving this aim.
Net worth, US$1.1 billion (February 2020)
Here is a Question for you which strategy you are going to apply in your business ? Comment down below !