OYO is leading,
new-age technology platform empowering the large yet highly fragmented global
hospitality ecosystem. They have been focused on reshaping the short-stay
accommodation space since incorporation in 2012 and have developed a unique
two-sided technology platform, comprehensively addressing key pain points of
our Patrons (being the owners, lessors and/or operators of storefronts listed
on our platform) on the supply side and Customers (being travelers and guests
who book accommodations) through their platform. OYO mobile application was the
third most downloaded travel mobile application globally and the most
downloaded travel mobile application in Asia in 2020, according to Sensor Tower, and had over 100 million downloads
as at March 31, 2021. They had 9.2 million OYO Wizard members (including 2.1
million members who pay subscription fees for higher membership tiers) in India
as of March 31, 2021, making it one of the largest loyalty programs run by
leading travel or food brands in India, and the largest among online hotel or
food brands in India, based on the number of members as of March 31, 2021,
according to RedSeer. They are at the middle of supply and demand in the highly
fragmented short-stay accommodation value chain.
Company benefits
significantly from the flywheel effect of the interplay between the supply and
demand sides on their platform, underpinned by strong local network effects and
operating leverage. Their platform provides multiple touchpoints across Patrons’
business and Customers’ experience, enabling them to establish a strong value
proposition for both our Patrons and Customers and creating the foundation
strong consumer brand.
According to
RedSeer, within the travel and tourism industry, the short-stay accommodation
market is one of the fastest growing segments. The short-stay accommodation
segment refers to stays of up to one month, and the market comprises stays
across hotels, homes, guesthouses, bed and breakfasts and campsites for
tourists and travelers. From 2015 to 2019, the total short-stay accommodation
market grew at 7.5% CAGR to reach around US$1.3 trillion in 2019. While the
industry dipped in 2020 due to COVID-19 restrictions, it is projected to revive
back and reach US$1.1 trillion in 2021. Going forward, the industry is
projected to grow at 6.6% CAGR from 2021 to 2030 to reach US$1.9 trillion in
2030.