Why OYO is Growing Rapidly

India’s billion dollar startup OYO ROOMS (previously known as Oravel Stays) is growing rapidly. Today, we will discuss how and why OYO Rooms is growing speedily.

OYO Rooms is founded by Ritesh Agarwal at the age of 18 in 2013. The concept of OYO Rooms is to provide the best service in the non-branded hotels.

Before getting into the main topic, let me tell you what OYO Rooms do.

The company finds the hotel which has a good location mainly. It proposes the hotel owner to give 5-10(or free available) rooms to the OYO Rooms. That’s how the local non-branded hotel is listed on the OYO Rooms. And, the most essential thing is OYO gets maximum 20% commission for renting the room.

Main services that OYO provides…

  • FREE WiFi
  • Breakfast
  • Hygiene Washroom
  • AC Room
  • Beds with comfortable spring mattresses
  • Trained staff

That’s how the company works.

7 Big Reasons Why OYO ROOMS is Growing Rapidly

 1. Idea

The purpose of starting OYO Rooms is truly astonishing. In a country like India, three or five-star hotels are not everyone’s cup of tea. By paying less, the customers are getting as better service as they get in branded hotels.

2. OYO Management

We all know that the implementation is the main thing in business. Ritesh Agarwal and Team OYO are successfully working at their best level to grow the business.

3. Innovation

In just five years of starting a company, they have made so many new services. It includes OYO Homes, OYO Townhouse, OYO Business, OYO Flagship, OYO Silverkey.

Read all the detailed information about OYO Services

4. Investment

Many great investment giants have admired the concept and the management of OYO Rooms. One of the biggest investment giants is Softbank Group.

Softbank has been regularly investing in the OYO Rooms. Till now, Softbank has invested more than $1 billion in all the four round of investing. This takes the five-year-old company at the valuation of $5 billion.

Also read: 6 Reasons Why Patanjali is Incredibaly Successful Company

5. Great Manpower

After getting the initial investment in 2015, OYO started hiring the quality people in the company.

That is helping consumers to give better user experience and user interface from the application of OYO.

Also, growing faster in so many cities and managing all the things are really challenging. This needs a great manpower.


OYO Rooms manages to arrange the investment amount. The company has gone outside of India finding more opportunities.

OYO has been able to expand its business to countries like UAE, Nepal, China, Indonesia and Malaysia.


OYO has got incredible success in China. More than 50,000 rooms are registered in just 4 months of launching OYO Rooms in China.

Now, let’s discuss some amazing thing about OYO Rooms. 

Interesting Things about OYO Rooms

  • After getting a huge success in China, OYO Rooms is eyeing the UK and European market.
  • OYO is bigger than The Indian Hotels which is 115 years old (A Tata Company).
  • By March 2019, OYO China is likely to beat OYO India.
  • Investors are predicting that OYO Rooms will be the largest hospitality company globally by 2023. That means, the company is likely to beat Marriott Hotels and Airbnb.

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By Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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