oyo rooms tech startup ideas by babeonideas

5 star hotel on a budget? This tech startup idea, OYO Rooms will give you a hospitality experience to remember

You don’t have where to spend the night.

Your trip was impromptu.

Money to afford a 5 star hotel is not in your pocket. You can only afford one probably in the slums right now. But you know it won’t be fun. You have tried it before, broken sinks, torn mattresses, no sheets, no wifi, no TV, no way.

But does it have to be this bad?

Not if OYO Rooms can help it.

OYO Rooms!


What is OYO Rooms?

OYO Rooms offers guests predictability, accessibility and availability of standardised hotel experience on a budget.

It is a tech startup idea with the ability to ensure a hotel awaits you wherever you find yourself in India.


Startup: OYO Rooms

Founded: May 2013


Ritesh Agrawal


Founders’ Inspiration

Agarwal imagined an India where hotels can be a home away from home, not the usual poor standards lodgers were used to.


Headquarters: Haryana, India


Vision: To standardize and build efficiency into all forms of real estate such as budget hotels, apartments, guest houses and resorts. (imagined by them).


Website: http://www.oyorooms.com


The Pitch (The idea in 20 words)

OYO Rooms is a technology based hotel management application simplifying, standardising and disrupting the  Indian hospitality industry.



Hotels, Mobile app, Data analytics




  • OYO Rooms app technology is enhanced to offer check-in, check-out, check and cash payments, corporate rates, toiletry audits through one click reconciliation.
  • The app utilises data analytics to highlight high demand areas while its scientific algorithm determines room prices.
  • The startup is offering predictability and affordability in hotel access for travellers across India.
  • OYO Rooms partnership hotels are co-branded to guarantee predictable room availability and room standard quality.
  • It standardised partner hotels by offering training to staff, refurbishing and bringing rooms up to OYO Rooms standards which includes mattresses, showers, flatscreen, wifi, breakfast, branded linen sheets and toiletries.
  • These standards are audited daily to maintain great customer experience across board.
  • The company maintains a minimum guarantee model where it pays hotels upfront for rooms and retains and only takes the incremental revenue off the sale on each room. A model it adopted to keep its partner hotels loyal to its brand.
  • It acquired ZO Rooms, a low budget technology driven hotel chain which grew to 200 hotels in 11 cities within a year.


Revenue Model

Its revenue model consists of budget ranges between $19 to $25 for small rooms and $26 to $66 for medium rooms.


Growth and Market prospects


OYO Rooms offers over 50,000 rooms in 200 cities and targets to grow to 500,000 rooms in three years.



OYO Rooms is funded by investors;

  • Seed: Undisclosed
  • Series A: Undisclosed – February 2015
  • Series B: Undisclosed – July 2015
  • Series C: $200 million – April 2016
    Total Funding: $200 million



OYO Rooms has successfully raised investment funding from some of the best venture capital institutions. Some of these investors include;

  • Softbank
  • Lightspeed Ventures
  • Greenoaks Capital
  • Sequoia Capital
  • DSG Consumer Partners



Future Strategy

The future strategy of OYO Rooms is to expand internationally, adding up to 200 townhouse hotel tending towards a more upscale strategy.



Industry Insights

The hospitality industry in India is rife with travelers, both tourists and indigenes alike as 415 million Indians, about a third of its population journey to different destinations within the country annually; the market potential is estimated at $10 billion.

However, this has created a vast amount of unsafe and unsanitary hotel models across India which has awaited revamping or quality assurance improvements.



OYO Rooms was blocked by online travel agencies because it disrupted business and stole a weighty chunk of its market share.


Opportunity for Idea Creators

This is an opportunity for idea creators to take advantage of and create something new and different.

On the look out to create more value within this industry sector way should be;

  • Developers
  • Hoteliers
  • Hospitality Professionals
  • And any other crazy head who thinks and can, can make things happen



Can you imagine an idea like OYO Rooms across major cities in the world? What can you do about it?

build an app or website babeonideas blog


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