Ritesh Agarwal Transforming Budget Hospitality with OYO Rooms

Rajshree Upadhyaya | Business Remedies | March 12, 2025 | Ritesh Agarwal’s story is a testament to ambition and perseverance. This journey started in a small town in Odisha and led to the creation of one of the world’s largest hospitality chains. Born in 1993, his entrepreneurial instincts surfaced early, from selling SIM cards in school to exploring business opportunities in the hospitality sector. Unlike most teenagers, he was deeply curious about technology and business, which eventually shaped his path.

The idea of OYO Rooms took root when he launched Oravel Stays in 2012, inspired by Airbnb’s model for budget accommodations. But soon, he identified a critical gap—India’s budget hotels lacked standardization, making stays unpredictable for travelers. This realization led to a pivot, and in 2013, OYO Rooms was born. The concept was simple yet revolutionary: partner with small hotel owners, upgrade their properties to meet quality standards and provide a seamless experience for travelers, all powered by technology.

Starting with a single property in Gurgaon, OYO quickly gained momentum. The company’s ability to standardize budget stays using a tech-driven approach set it apart. Investors saw its potential, leading to substantial funding rounds from SoftBank, Sequoia Capital, and Airbnb. By 2018, OYO had raised $1 billion, expanding into more than 80 countries, including China, the US, and several European nations. The aggressive growth strategy propelled it to over 43,000 properties across 800 cities by 2024, cementing its status as a global hospitality leader.

However, rapid expansion brought challenges. In 2019, disputes with hotel partners surfaced, and operational inefficiencies strained finances. Then came the COVID-19 pandemic, which hit the travel industry hard and forced OYO to downsize. Despite the setbacks, Agarwal remained steadfast. By 2024, the company rebounded, reporting its first-ever profit after tax of ₹229 crore and achieving eight consecutive quarters of positive EBITDA. Recognizing emerging trends, OYO tapped into spiritual tourism, leveraging the growing demand for destinations like Ayodhya.

Beyond business, Agarwal’s influence grew in India’s entrepreneurial landscape. Recognized by Forbes 30 Under 30 and listed among the youngest Indian billionaires in 2024, he became an inspiration for aspiring entrepreneurs. His involvement in Shark Tank India as the youngest investor in 2023 showcased his commitment to mentoring others. By 2025, he launched the podcast How to Become a Millionaire, emphasizing the importance of resilience and learning from failures.

With an IPO on the horizon, OYO faces a crucial financial milestone—a $383 million loan repayment due by October 2025. Lenders might extend the deadline only if the company proceeds with its public listing. To reinforce confidence, Agarwal increased his stake by investing ₹550 crore in 2024, reaffirming his belief in the company’s long-term growth. Meanwhile, OYO is diversifying into B2B services with Oravel Travel Solutions, focusing on corporate travel and event planning, while expanding its premium hotel segment in the UK with a £50 million investment.

From a teenager with big dreams to the founder of a global hospitality giant, Agarwal’s journey embodies innovation and persistence. OYO’s success, despite its challenges, underscores the power of a visionary mindset. His story continues to inspire young entrepreneurs, proving that the right idea and determination can create an impact far beyond expectations.