Oyo set to adapt new biz strategy to attract investors, simplify operations

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Oyo, India’s largest hospitality chain company, has planned to adapt a new strategy to simplify operations and attract different investors. Th company has divided its business into three sections – India, international and technology & brand licensing.

While, the step will give the company sharper focus and better alignment besides improve competitiveness, it comes at a time when the company is seeking to raise funds at a valuations of $10 billion.

“Brand ‘Oyo’ is being licensed to group entities and Oravel charges a fee for use of its brand name. Also, the international hotels business has its own growth path with unique requirement. The Indian hotel business also has its own unique and specific requirements, synergies, risks and investor profile,” the company said.

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.

The parent company Oravel Stays will transfer the India hotel business, which also includes new areas like co-working and event management, to its subsidiary Alcott Town Planners, according to the sources.

All Oravel Stays shareholders will get an equal number of shares in the India unit. Oravel Stays will house the technology business and the brand while holding a stake in Oravel Stays Singapore Pte Ltd, which houses the global business.

While, other hospitality startups, which are emerging at a fast pace in India includes  YatraFabhotelsTreeboMakeMyTripClearTrip, etc.

Also read: Oyo’s Ritesh Agarwal in talks to buy back shares from Sequoia Capital, Lightspeed Venture Partners

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