Startup Originals Team
OYO Rooms, one of the world’s fastest-growing hospitality chains, is the story of how a young entrepreneur from India transformed a modest idea into a billion-dollar brand. The company’s journey, driven by bold vision, relentless execution, and cutting-edge technology, started with just one room and today spans over 80 countries, with millions of rooms and listings globally.
The Birth of an Idea:
The story begins with Ritesh Agarwal, a young man from Odisha, India, who was fascinated by startups and the travel industry from a young age. At just 17, he launched Oravel Stays in 2012, a platform inspired by Airbnb to list budget accommodations across India. However, he quickly realized that the bigger issue wasn’t the lack of listings, but the inconsistency in the quality of budget hotels. This insight led him to pivot the business.
In 2013, at the age of 19, Ritesh rebranded Oravel into OYO Rooms (On Your Own). His goal was simple but powerful – to standardize budget hotel experiences in India. Backed by the Thiel Fellowship, which awarded him $100,000 and access to elite mentorship in Silicon Valley, Ritesh began executing his vision with laser focus.
Rapid Growth and Funding Success:
OYO’s model was innovative – instead of building or owning hotels, the company partnered with small hotel owners, renovated their properties to meet a set standard, and rebranded them under the OYO name. OYO also introduced a seamless app and website for booking, customer service, and check-ins.
Between 2014 and 2019, OYO saw meteoric growth. It raised multiple rounds of funding from top investors like SoftBank, Lightspeed Ventures, Sequoia Capital, Greenoaks Capital, and even Airbnb. By 2019, OYO had raised over $3.5 billion in total funding and achieved a peak valuation of around $10 billion.
With strong backing, OYO expanded aggressively into international markets – first Malaysia, then China, UAE, the UK, Europe, and eventually the USA. It also entered new verticals like co-living (OYO Life), coworking (OYO Workspaces), and vacation homes.
A Hospitality Tech Powerhouse:
At its core, OYO is a technology company in the hospitality space. It developed in-house tools for dynamic pricing, booking management, partner onboarding, customer reviews, and real-time auditing. The company even acquired Danish startup Danamica, which specialized in pricing algorithms, to sharpen its data science edge.
OYO’s tech-driven approach helped it manage over 1 million rooms and more than 43,000 hotels worldwide by 2019. Its ability to streamline operations and offer standardized service in budget hotels was seen as a game-changer, especially in price-sensitive markets like India.
Challenges, Controversies, and the Pandemic:
Despite its rapid growth, OYO faced several internal and external challenges. The company was criticized for aggressive expansion, strained relationships with hotel partners, and a lack of sustainable profitability. Several hoteliers alleged late payments or unfavorable contract changes, leading to legal disputes in India and abroad.
The COVID-19 pandemic in 2020 brought travel and hospitality to a standstill. OYO’s occupancy rates plummeted, forcing the company to lay off employees and cut costs. Its valuation dropped from $10 billion to about $3 billion, and OYO exited several international markets including the U.S. and parts of Europe.
Yet, the company adapted quickly – focusing on hygiene protocols, digital check-ins, and long-term stay offerings. These efforts helped OYO slowly bounce back in the post-pandemic world.
Return to Profitability and IPO Aspirations:
By 2023–24, OYO reported its first full-year profit, posting a net income of around ₹229 crore (~$28 million). It had also achieved eight consecutive quarters of positive adjusted EBITDA, signaling improved financial health and operational efficiency.
OYO also filed for an IPO multiple times – in 2021 and again in 2024, but withdrew both due to market conditions and internal restructuring. As of 2025, the company is gearing up for a third IPO attempt in 2026, targeting a valuation of approximately $7 billion.
OYO has also made strategic acquisitions like Motel 6 in the U.S. for $525 million in 2024, further strengthening its North American presence.
The Man Behind It All: Ritesh Agarwal
Ritesh Agarwal’s journey is as fascinating as the brand he built. From being a dropout to becoming the youngest self-made billionaire in India, Ritesh has consistently demonstrated vision, adaptability, and resilience. In 2024, he joined Shark Tank India as a guest investor, inspiring young entrepreneurs with his story.
He remains the driving force behind OYO, focusing on innovation, technology, and expanding sustainable hospitality solutions worldwide.
