Ritesh Agarwal is synonymous with OYO Rooms, a company that has changed how people find and book affordable hotels globally. He is the founder and CEO of OYO Rooms and a billionaire entrepreneur. The company is India’s largest hotel network, with a revenue of Rs 5,388 crore in FY2024. He was born in a small town in Odisha, India and started OYO when he was just 19 years old. A simple idea drove Ritesh Agarwal to establish OYO Rooms: making it easier for everyone to find reliable, budget-friendly places to stay.
His journey from a curious young boy to a top entrepreneur in India shows how a great idea and hard work can completely transform an industry. In this article, we will look into the early life of Ritesh, and learn more about how he established OYO.
Early Life
Ritesh was born in Bissam Cuttack, Odisha, and grew up in Titilagrah, where his family ran a small shop. This early exposure to business sparked his interest in entrepreneurship. After he finished school, he moved to Delhi for college but soon dropped out to pursue his dreams. At just sixteen, he was recognised for his talent by being selected for the Asian Science Camp in Mumbai.
He had faced many challenges on his journey. After dropping out of college, he sold SIM cards to make ends meet. Despite personal hardships, like losing his father shortly after getting married, Ritesh never gave up on his dreams.
In 2012, Ritesh started Oravel Stays to offer budget accommodations. His travels across India, and staying in over 100 guest houses and hotels, made him realise the need for affordable, high-quality hotels. With this insight, he transformed Oravel into OYO in 2013. Today, OYO is a major global brand in the hospitality industry.
OYO Rooms is an Indian hotel chain that has grown into one of the largest and fastest-growing hospitality companies. It started by focusing on budget hotels but soon expanded globally. Today, OYO operates thousands of hotels and vacation homes in many cities across India, Malaysia, Nepal, the UK, the UAE, Sri Lanka, and beyond.
Facts About Ritesh Agarwal
| Name | Ritesh Agarwal |
| Nationality | Indian |
| Occupation | Founder & CEO of OYO Rooms |
| Net Worth | 1900 crores |
| Birthday | 16th November 1993 |
| Age | 30 years |
| Spouse | Geetansha Sood |
OYO Rooms Journey
In September 2012, Ritesh Agarwal launched a budget accommodation website called Oravel Stays. The company joined an accelerator program by Venture Nursery and won a $100,000 grant through the Thiel Fellowship in 2013. Ritesh launched OYO Rooms in May 2013, and the company rapidly expanded, raising $1 billion by September 2018. Below is a timeline of OYO’s journey till now:
- 2013: Ritesh Agarwal was selected for the Thiel Fellowship and received a $100,000 grant.
- 2014: OYO received its first Series A funding.
- March 2015: Secured $25 million in funding.
- April 2015: Launched the OYO app and began rapid expansion.
- July 2015: Raised $100 million in Series C funding from SoftBank.
- 2016: Reached 1 million check-ins and launched in Malaysia.
- 2017: Expanded into Nepal
- 2018: Operations in the UK, UAE, Dubai, China, Singapore and Indonesia began and the company became a unicorn.
- 2019: OYO added over 330,000 rooms.
Being On Shark Tank
Ritesh Agarwal appeared on ‘Shark Tank India,’ showcasing his role as a prominent entrepreneur and industry leader. He has invested in companies such as First Bud Organics, Rocca, Croatia Technologies, WhySoBlue, Toffee Coffee Roasters and Daak Room.
Challenges Faced By OYO
Despite its success, OYO has faced several issues since its founding. Below are some of these issues:
- Unethical Growth Strategies
The company has been accused of listing rooms from hotels that no longer work with them, boosting the number of rooms on its site. Many of these rooms come from unlicensed hotels and guesthouses. Furthermore, to avoid trouble with authorities over illegal rooms, OYO sometimes offers free stays to police and officials.
- Complaints Of Unpaid Dues
OYO has been accused of charging hotel extra fees while refusing to pay the amounts owed, according to hotel owners and employees. Many of them have even filed criminal complaints against OYO. Aditya Ghosh, the head of India operations, dismissed these complaints as simply disagreements over penalties for poor customer service.
- Protest By Hotel Owners
Small hotel owners in several cities have protested claiming that OYO has cheated them out of promised returns and guarantees by imposing extra charges without informing them. Many of these charges aren’t mentioned in the contracts between the hotel owners and OYO.
Awards & Recognition
- First Resident Asian to win ‘20 Under 20’ Thiel Fellowship in 2013
- One of the Top 50 Entrepreneurs by TATA First Dot Awards in 2013
- One of the 8 Hottest Teenage Start-up Founders in the World by Business Insider in 2013.
- Received TiE-Lumis Entrepreneurial Excellence Award in 2014.
- Forbes “30 Under 30” in the Consumer Tech Sector.
- Young Entrepreneur Award by Business World.
Future Plans
OYO has announced plans to launch 400 new properties in major spiritual destinations like Ayodhya, Varanasi, Tirupathi and Katra-Vaishno Devi by the end of the year. This expansion is driven by a rise in domestic travel and growing interest in spiritual tourism. OYO has identified key locations such as Ayodhya, Puri, Shirdi, Amritsar, Haridwar, and the Char Dham route to open these new properties.
In addition to its plans in India, OYO aims to expand its presence in the US by adding over 250 hotels in 2024, which is a 150% increase compared to the 100 hotels added last year. Speaking at the Skift India Summit, OYO’s founder Ritesh Agarwal, highlighted the company’s growth in the U.S., where it has grown from just over 100 hotels two and a half years ago to 320 properties today. This expansion is part of OYO’s strategy to strengthen its position in the American market.
The Bottom Line
Ritesh Agarwal, founder and CEO of OYO Rooms, transformed the hospitality industry with his innovative approach to budget accommodations. Starting OYO at just 19, Ritesh expanded the company globally, making it one of the largest hotel chains in the world.
