OYO is unicorn startup from India that quietly entered Malaysia in 2017 and has scaled to more than 100 hotels within one year.
OYO Rooms, commonly known as OYO, is India’s largest hospitality company, consisting mainly of budget hotels.
It was founded by 24-year old Ritesh Agarwal in 2013 (he was turning 19 when he founded his startup).
His startup has since grown to over 8,500 hotels in 230 cities in India, Malaysia, UAE, Nepal, China and Indonesia.
OYO rebrands and upgrades exisiting budget hotels to give similar guest experience across cities. Hotel owners pay OYO up to 25% commission.
In March 2015, OYO raised Series A round of funding $24 million from Lightspeed Venture Partners, Sequoia Capital, Greenoaks Capital and DSG Consumer Partners.
In September 2018, OYO raised $1 billion. The majority of the funding — $800 million, to be exact — was led by SoftBank’s Vision Fund with participation from Lightspeed, Sequoia and Greenoaks Capital. Softbank is currently its biggest funder.
OYO said there is also an additional $200 million that has been committed from as-yet-unnamed investors.
The deal values the five-year-old company at $5 billion.
There are over 100 OYO hotels in Malaysia right now.