OYO Hotels & Homes marked its valuation at $10 billion from its dealings with Softbank’s Vision Fund — hinting a similar story to the recent blunder by the shared office giant; WeWork.
Like Neumanns’s WeWork, Oyo burns its capital fast with hotel franchising and leasing, plus its recent purchase of Amsterdam’s vacation rental company; @Leisure Group, and its deals on entering the luxury market in Saudi Arabia.
Investment from big companies like Airbnb, Didi Chuxing, and Grab opened the way for Oyo’s massive operation of 1.2 million rooms in 80 countries, with its fastest-growing market in the US and the UK.
Ritesh Agarwal founded Oyo with its USP on providing the basic travel needs which allows it to charge lower price by:
Providing basic cleanliness and service
Using technology to set online dynamic pricing
Yield more assets
At the World Economic Forum (WEF) in Delhi, Aditya Ghosh, Oyo's South Asia chief said:
"The proof point of this being a very secular need around the world is the pace at which we have been able to grow not just in India and China but even in so-called mature markets."