Much like what the acronym ‘OYO’ stands for “On-Your-Own,”
the story (so far) of the founder and chief executive officer of OYO
Rooms (referred simply as OYO), Ritesh Agarwal has pretty much the same
under-current. He has been on his own (so to say) ever since he was
still a child of 8 when (it is reported) he got introduced himself to
computer programming to becoming the youngest CEO of a company at 16
(some dispute the claim) of a company called Worth Growth Enterprises,
to writing a book when he was just into his teens, to giving a slip to
education to pursue what he liked such as founding a company that was
in-line with what he thought, to creating an all-new platform –unlike
the other start-ups of the country which are the so-called
“Indian-versions” – to becoming the first Asian to get a the much
coveted “20 under 20 Thiel Fellowship”. Yes, true to the brand acronym –
he has been on-his-own and, in being so, he has created a niche for
himself and the company he founded as a teenager and saw it grow from a
1-room, 1-city status to today boasting of an inventory in the range of
6,500 hotels (with about 65000 rooms) spread across more than 200 cities
and, what’s more, he has the company on the path to spreading its wings
far and across the globe beginning with operations in Malaysia.
Education and family
Son
of a Marwari who ran a small business (his mother is a homemaker) in an
Odisha town who later worked for a company, Ritesh was born in
BissamCuttack on 16th November, 1993.He grew up in this not remote yet
relatively lesser known town of the eastern state of the country.
He
had his basic schooling from the Sacred Heart School while he completed
his higher secondary (10+2) from St. John’s Senior Secondary School
(English, Physics, Chemistry, and Mathematics).
Entrepreneurial Spirit…sprouts
It
cannot be ascertained as to when exactly the businessman took shape in
the young mind but that he was a coder and participated in events such
as the one conducted by Tata Institute of Fundamental Research (TIFR –
unconfirmed) we know. To satisfy his parents (wash away the school
drop-out tag from their mind) he enrolled for the Indian School of
Business & Finance (Delhi) – which was actually an international
programme offered by the University of London.
But, as we now know
it, he wasn’t into it – his was a wanderer who kept travelling to
research deeper into his business ideas and participate in
entrepreneurial events – which interested him much, despite not much
pedigree into that area.
Consequently, he dropped out of that
programme and continued with his quest for avenues to express the
business ideas germinating in his mind.
Call it serendipity or
experience or whatever but it was his theses travels that entailed
staying in budget hotels or cheaper hotels to be precise that actually
gave shape and form to the business idea that is now called as OYO
rooms. He found that firstly there weren’t many options for travelers
when it came to decent budget hotels. The problem was further compounded
by the fact that whatever was on offer was so sub-standard and mediocre
even that not many in the civil society would chose them for their stay
during travel (unless forced to).
Sparked it all…
Thus,
with this bad experience as the base to build on, he went about doing
more research – being the son of a Marwari - known to be shrewd, astute,
and a keen sense of business. He further found that the unbranded
hotels – the segment the likes of him would be interested in staying in
had about 1.8 million rooms in the country compared to just 112000 in
the so called branded segment.
That means, there were hotels which
people like him – short on budget – wanted. Only problem seemed like
finding them was difficult. So, being the techno-biz guy he was, he
started working on a platform which would aggregate all such unbranded
and budget hotels and make them accessible for commoners like him.
Oravel Stays…precursor to OYO Rooms
He
started off with a single hotel to see the efficacy of his idea in
Gurgaon (now Gurugram). The hotel had 14 rooms of which Oravel took 11
to try out the concept. He brought in an expert hand in advertising and
worked tirelessly to proliferate the service further.
He slowly
built the team of developers and support executives and continued
operations. He realized there were few things that still needed to be
ironed out. Expansion – unless tested in deep waters, the quality of his
concept would not sustain. That required funding – so he managed to
bring a local venture partner and helped infuse a capital of around
Rs.2.8 million.
Theil Fellowship…and the take-off thereafter
While
he was busy with formalizing and streamlining the business model along
with struggling to keep afloat in the midst of some payment issues (for
outside agencies whose services and platform were hired to further the
concept) – everything looked difficult.
But, being the man made of
sterner stuff – despite his young age – he was able to sail the ship of
Oravel through quite admirably (some critics deny him the credit).
Along the way they rebranded the company to call it OYO Rooms –
something akin to him intrinsically – Own-Your-Own.
While they
were doing all this, he came to know about the ’20 under 20 Thiel
Fellowship’ offered to school/college drop-outs - a scholarship program
run by PayPal co-founder Peter Thiel. After doing all the groundwork
required – he applied for it.
Luck favors the brave and Ritesh was
brave enough to think that he was deserving of it, so it was no
surprise for him when he was awarded the fellowship of Rs.3 million (To
be paid at Rs.2.7 lacs a month for a year). That is when everyone else
realized there is something really different, perhaps even special
happening in the Indian travel / hospitality and start-up market.
He
was the first Asian to get that – no small feat. Especially for such a
young bloke. With the much needed capital in hand, Ritesh and co. now
set about putting into place the differentiator of OYO.
Ritesh had
by now come to realize that availability of budget and unbranded hotels
was not the issue, which was the base for him to start a Airbnb kind of
service in Oravel Stays. The real issue was quality and
standardization. So, he and the team worked tirelessly to bring in
sweeping changes to the unbranded hotel sector in the country.
Today,
thanks to Ritesh Agarwal and OYO, about 65000 rooms across 220 cities
in the country follow 30-quality standards that a part of a huge
160-item check-list. The company makes sure that all under the OYO brand
strictly adhere to these standard by religiously enforcing them. They
have a quality audit of each hotel under it – every 3 days.
Soon
funding from other venture capitalists flowed and today it clocks at
$130 million – a giant, giant leap for something that had started with
Rs.60,000 from the pocket of India’s youngest entrepreneur ever – who
also wrote a best-selling (unconfirmed) book called “Engineering
Colleges of India’ much before he even clicked in business
(unconfirmed).
Along the he has had friction with people – as it
is with most start-ups. Allegations of foul-play, ethics being
compromised etc. were thrown around – which seem part and parcel of the
start-up culture (as vindicated by view of one of the early investor in
the company). Despite all this, Ritesh Agarwal has been able to do what
no other Indian start-up has been able to – find a place for its niche
service. He didn’t cop[y the concept – his is the original one. And he
proved it is workable and even profitable. On way to entering the
Unicorn club of India; and it shall be, at the pace it has grown, sooner
rather than later.
Well done Ritesh. Keep going!!
Awards & Recognition
|
| Forbes “30 under 30” in the consumer technology sector |
| Top 50 entrepreneursby TATA First Dot powered by NEN Awards, 2013 |
| TiE-Lumis Entrepreneurial Excellence Award, 2014 |
| Young Entrepreneur Award, Business World |
| Finalist of Global Student Entrepreneurship Awards-India |
| NCSE National Awardee |
Quotes |
| “Going
to college opens doors for learning in a structured fashion. In my
case, I was sure of my career path since I was young – I only wanted to
become an entrepreneur.” |
| "One
big learning from Thiel fellowship was think really big and create an
impact, without thinking if anybody has done it before" |
| “No
Indian traveler deserves to stay in those kinds of places, no matter
what he pays. It is this trust deficiency that OYO is trying to
combat,” s |
| “We are not building an Indian alternative to what has been attempted in the Silicon Valley or China.” |
| “I am yet to hear of an entrepreneur who can claim to have succeeded without making mistakes.” |
| “We
are not in a hurry to expand our footprint. We will pursue growth
outside India in a measured and well thought-through manner.”.. |
| “We
are offering 65,000 rooms through our partners and plan to grow deeper
in all key business and leisure cities, tripling our inventory by
December 2016.”. |
| “We have so much competition and, at the same time, no competition!” |
| “The best thing that could have happened to me.” About the Thiel Fellowship.. |