Oyo Life, a co-living segment of the famous hospitality unicorn Oyo, has planned to set up 100,000 beds across major cities by the end of 2019, reported ET.
The SoftBank-funded hospitality giant Oyo, under its co-working subsidiary Oyo Life, currently, operates 40,000 beds in cities such as Delhi-NCR, Pune and Bengaluru.
“The focus is on reducing cash burn and higher occupancy that will help us to scale operation,” said Rohit Kapoor, Chief Executive Officer, New Real Estate Businesses, OYO.
The SoftBank backed hospitality chain Oyo was started by Ritesh Agarwal in 2013. The startup was started from a single hotel to over 8500 hotels at present. It is the fastest growing network of hotels, offline and online.
While, Oyo Life was flagged off in 2018, which is presently, having abour 85- 90 per cent occupancy and is adding 5000- 8,000 beds per month.
“The rental market is pegged at $50 billion and has huge opportunities as there is a supply-demand gap in the long-term rental housing ,” said Kapoor.
Currently, Gurgaon and Bengaluru contributes 45% of of the total inventory, he added.
Furthermore, as per the reports by JLL, the co-living market in India is expected to offer a business opportunity of INR 1 trillion by 2023 along with the capacity of 5.7 million beds from the previous levels of INR 458 billion and 3.6 million beds in 2018.
Apart from Oyo, other strong players in the hospitality startup include Yatra, Fabhotels,Treebo, MakeMyTrip, ClearTrip, and among others.