Oyo is a Gurugram, India based unicorn founded by Ritesh Agarwal. The company aims to provide users with a platform to search for, compare, and book accommodation facilities online. The company has become quite popular and is on a journey of growth and expansion.
Oyo has been enjoying tremendous support from its investors and growing popularity from the users. The app has proven to be a great help for those who need to find hotels or rental homes in unfamiliar locations. Oyo had its rounds of Series E late-stage venture investment from last September to early April this year, which amassed a total of almost US$1.3 billion in those eight months. The series saw major investors like SoftBank Vision Fund, Sequoia Capital and even Airbnb investing in Oyo.
Oyo Series F Plans
The announcement regarding the Series F stage funding took place on Monday, October 7th and comes at a precarious time for the company. The company said in its media release that an investment of US$700 Million would be pumped in by RA Hospitality Holdings, the company owned by founder Ritesh Agarwal. The remaining US$800 Million will be raised from the other shareholders. The company proclaimed that the money would be used to strengthen the company overseas, especially to increase the growth of the company in the US, and increase their presence in the vacation home market of Europe.
The growth so far
Oyo has had tremendous growth so far. The company claims growth in revenue of 3.8x in August 2019 as compared to August 2018 and a 50% increase of EBITDA on a Y-o-Y basis. The company currently has marked its presence in 338 cities and has over 590,000 rooms in China, in Indonesia it is present in over 100 cities and over 27,000 rooms, in the UK, it is present in 30 destinations and has over 3,500 rooms, and more recently in the US, with a presence in 60 cities, 21 states, and over 7,500 rooms, in addition to its massive business network in India. The company already employs over 20,000 OYOpreneurs and has created opportunities for over 300,000 local hospitality enthusiasts around the world.
The Precarious timing
The announcement, although rightfully optimistic, comes at a precarious timing. There is an ongoing skirmish between hotel owners and the company. The issue has been a headache for the firm and is currently under investigation in some cities. The company has allegedly cheated the owners by levying charges not mentioned in the contract. The company, however, continues to shun these allegations.
The future looks promising for Oyo. Keep an eye!