Oyo elevates Ankit Gupta as CEO of ‘franchise and frontier’ business in India
Mumbai: Oyo Hotels & Homes has elevated Ankit Gupta as chief executive officer (CEO) of “franchise and frontier” businesses in India. He will now be leading the company’s flagship hotels and homes business, as well as other verticals.
Gupta, who will continue reporting to Oyo India and Southeast Asia CEO Rohit Kapoor, has been instrumental in significantly strengthening the India business over the last two years, according to a statement released on Thursday.
“Gupta is very committed towards building Oyo for the long term, and has high levels of ownership. His inspiring leadership during the pandemic has helped us balance several priorities towards our customers, patrons and colleagues and respond to the crisis with agility,” Kapoor said.
Oyo Rooms files DRHP for Rs 8,430 crore mega IPO
New Delhi: Oravel Stays Limited, the operator of hospitality start-up Oyo Rooms, has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) to raise Rs 8,430 via IPO.
According to the draft papers, the IPO will consist of issuance of fresh issue of equity shares worth Rs 7,000 crore and an offer for sale (OFS) of up to Rs 1,430 crore by promoters and existing shareholders.
With this, the Softbank-backed Oyo joins some of the other top-tier Indian start-ups like Paytm, Policy Bazaar, Nykaa and others which have filed for IPOs over the past few months.
Online food delivery firm Zomato, in July, made a stellar debut on the bourses here setting the stage for domestic start-ups to ride on the current IPO wave.
n the OFS, SVF India Holdings (Cayman) will offload stake worth Rs 1,328.53 crore, whereas A1 Holdings Inc will sell shares worth Rs 51.62 crore. China Lodging Holding (HK) will sell equity shares worth Rs 23.13 crore and Ivy Ventures LLP will sell shares worth Rs 26.71 crore.
In the financial year 2020-21, Oyo Rooms reported a 52 per cent fall in revenue to Rs 6,329.73 crore against a revenue of Rs 13,168.15 crore a year ago.
The company reported a restated loss from continuing operations of Rs 2,294.31 crore in the fiscal year ended on March 31, 2021, which was Rs 11,079.79 crore in the previous financial year.
Oyo Rooms (stylised as OYO), also known as Oyo Homes & Hotels, is an Indian hotel chain. It is the world’s third-largest and fastest-growing hospitality chain of leased and franchised hotels, homes and living spaces. Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. Over a span of six years, the startup expanded globally with thousands of hotels, vacation homes and millions of rooms in hundreds of cities in India, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more. The company’s investors include SoftBank Group, Greenoaks Capital, Sequoia India, Lightspeed India, Hero Enterprise, Airbnb and China Lodging Group.
In 2012, Ritesh Agarwal launched Oravel Stays to enable listing and booking of budget accommodations. After undertaking months of research and staying in various bed and breakfast homes, guest houses, and small hotels across India, he pivoted Oravel to OYO in 2013.
OYO partners with hotels to give similar guest experience across cities. Shortly after launching Oravel Stays, Ritesh Agarwal received a grant of $100,000 as part of the Thiel Fellowship from Peter Thiel. OYO currently has over 17,000 employees globally, of which approximately 8000 are in India and South Asia. OYO Hotels & Homes now identifies as a full-fledged hotel chain that leases and franchises assets. The company claims to invest in capex, GMs to oversee operations and customer experience as well as generating around a million job opportunities in India and South Asia alone. OYO has also set up 26 training institutes for hospitality enthusiasts across India..The company is currently valued at $10 billion as per the last round of funding.
September 2018 – raised $1 billion, of which the RoC filing for the amount of $100 million raised from Star Virtue Investment Ltd. was made on 13 February 2019.October 2019 – Series F funding of $1.5 billion led by SoftBank Group, Lightspeed Venture Partners and Sequoia India.
Founder & CEO, Ritesh Agarwal, through RA Hospitality Holdings (Cayman) in 2019 signed a $2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners, subject to regulatory and shareholder approvals. Lightspeed Venture Partners, and Sequoia India, OYO’s early supporters, are selling part of their holdings in order to help the founder increase his stake and thereby commitment while remaining invested significantly in the company’s long-term mission.In 2019, OYO reported 3.5x growth in revenue in FY 2017–18 at Rs 416cr for India operations and a marginal loss of 360 cr. In 2018, OYO reported a loss of 330.97 cr which was better than the previous year.
In 2018, the hospitality chain company announced the appointment of Aditya Ghosh, the former president of India’s largest airlines, IndiGo, as the chief executive officer of its South Asia business. Ghosh would be in charge of India and Nepal.In November 2018, OYO appointed Max Healthcare executive Director, and Rohit Kapoor as the CEO of its new real estate businesses. In 2018, OYO hired Prasidha Menon as Global Head of Communications. In 2016, OYO announced the hire of Amazon India’s Anil Goel as Chief Technical and Product Officer.
In March 2018, OYO acquired Chennai-based service apartment operator Novascotia Boutique Homes marking its first major buyout as well as establishing its presence in the service apartment and corporate executive stay.
In 2019, OYO and Airbnb announced a strategic partnership with Airbnb investing in OYO and the company will list their properties on Airbnb platform. OYO in March 2019, announced a 1400 cr investment in its India and South Asia businesses over 2019 as a part of its efforts to increase infrastructure, strengthen technology and internal capability.
In May 2019, OYO announced the acquisition of Amsterdam-based @Leisure Group, Europe’s largest vacation rental company.
In August 2019, Oyo made its first major investment in the United States by purchasing the Hooters Casino Hotel, near the Las Vegas Strip, in partnership with US-based real estate company Highgate, for $135 million.