Company Brief: OYO

Overview
OYO is a leading, new-age technology platform transforming the global hospitality ecosystem. Since its inception in 2012, OYO has been focused on revolutionizing the short-stay accommodation space. The company operates a unique, two-sided technology-driven platform that add... Read More

Company Brief: OYO

Overview
OYO is a leading, new-age technology platform transforming the global hospitality ecosystem. Since its inception in 2012, OYO has been focused on revolutionizing the short-stay accommodation space. The company operates a unique, two-sided technology-driven platform that addresses key challenges on both the supply side (Patrons)—hotel and property owners—and the demand side (Customers)—travelers booking accommodations.

By partnering with Patrons, OYO converts unbranded, under-utilized hospitality assets into standardized, digitally enabled storefronts with enhanced revenue potential. Customers benefit from access to high-quality, affordable stays across diverse geographies through OYO’s platform.

Scale and Reach
As of March 31, 2021, OYO had 157,344 storefronts listed across more than 35 countries. Its proprietary apps, Co-OYO and OYO OS, power over 40 digital tools that allow Patrons to manage operations such as onboarding, revenue management, pricing, and customer experience. Customers can access OYO storefronts via its D2C channels or third-party OTAs, supported by features like digital booking, check-ins, and customer support through the OYO mobile app.

Business Model

OYO’s model is anchored on partnerships with property owners ("Patrons") who list their hotels and homes on the platform. In exchange for distribution rights and partial pricing control, OYO provides a comprehensive tech stack that enables dynamic pricing and operational optimization.

OYO earns revenue through:

Revenue-sharing arrangements, typically 20%–35% of Gross Booking Value (GBV) (net of discounts and loyalty).

Subscription-based listing services, where Patrons pay a fixed fee to be listed on the platform.

This alignment creates mutual value—higher revenue for Patrons and scalable growth for OYO.

Asset-Light Model

OYO operates with an asset-light, capital-efficient model, owning virtually no physical properties. As of March 31, 2021, 99.9% of its listings involved no minimum guarantees or fixed payouts. This structure allows OYO to scale efficiently while avoiding the burden of capital expenditure and operational overheads related to property maintenance and staffing.

Market Focus and Global Footprint

OYO has the largest hotel storefront footprint in India and Southeast Asia, and the second-largest home storefront presence in Europe (as of September 9, 2021). These Core Growth Markets accounted for over 90% of OYO’s total global storefronts by March 2021.

Key Financial Highlights

FY 2021–22:

Revenue from Operations: Increased from ₹3,900 Cr (FY21) to ₹4,700 Cr.

Adjusted EBITDA Loss: Improved significantly from ₹1,700 Cr to ₹470 Cr.

Gross Booking Value (GBV): Rose from ₹6,600 Cr to ₹8,100 Cr.

Strategic Shift: Focus moved from rapid expansion to sustainable growth and profitability.

IPO Outlook: IPO was expected in the following financial year.

Geographic Focus: Continued emphasis on India, Southeast Asia, and Europe.

FY 2022–23:

Total Income: Grew by 14%, from ₹4,905 Cr to ₹5,602 Cr.

Net Loss Reduction: Down by 34%, showing clear progress toward profitability.

Adjusted EBITDA Loss: Reduced by 68%, from ₹1,160 Cr to ₹374 Cr.

New Launches: Rolled out 10 Palette Resorts in key Indian cities with a target of 50 Palette Resorts by Q2 FY 2024.

IPO Outlook: IPO anticipated within the current fiscal year.

Presented by Rook Capital

At Rook Capital, we track high-impact companies like OYO that leverage innovation to disrupt traditional sectors. OYO’s journey from startup to global player exemplifies the power of tech-enabled scalability and customer-first thinking in the modern hospitality industry.