OYO Rooms Founder & CEO Ritesh Agarwal Shares Journey | Young Turks Conclave 2018 | CNBC-TV18

Summary

Ritesh Agarwal, founder of OYO, shares his inspiring journey from a small-town entrepreneur to building a global hotel chain. Highlighting his perseverance, innovation, and commitment to excellence, he emphasizes the importance of thinking big and solving unique problems. Despite the challenges, OYO's strategic shift towards franchising and leasing propelled its rapid growth. Ritesh reflects on his experiences, leadership, and the crucial partnerships that have shaped OYO's success. With a clear vision of becoming the world's largest hotel chain, he encourages others to stay focused, driven, and passionate about their entrepreneurial pursuits.

Takeaways

• 😀 Ritesh Agarwal, founder of OYO, started his entrepreneurial journey at a young age, driven by the desire to improve the lives of everyday people through quality living spaces.
• 😀 OYO’s initial business model involved offering affordable, high-quality living spaces for the common man, which resonated with a large market in India and beyond.
• 😀 Despite challenges, OYO scaled rapidly, expanding in India, China, and several international markets, including Indonesia and Dubai, with an entrepreneurial mindset at its core.
• 😀 OYO's success can be attributed to the team's hunger, energy, and the entrepreneurial spirit shared by people from various backgrounds, including former top executives in other major businesses.
• 😀 Ritesh believes that OYO is still in its early stages, and despite their achievements, they see themselves as being at 'Day Zero,' with the ambition to build the world’s largest hotel chain.
• 😀 OYO has focused on competency-building initiatives, such as setting up skill institutes in India and China, to provide thousands of jobs to young people and build a solid foundation for the future.
• 😀 The company’s investments have been centered around competencies and creating long-term value, including setting up R&D centers to foster innovation in the hospitality industry.
• 😀 Ritesh's vision for OYO is not just about growing the company, but also contributing to the creation of a robust workforce with relevant skills to adapt to changing industries.
• 😀 OYO’s strategic decision to raise capital, including the $250 million investment two years ago, has allowed the company to continue scaling and expanding its operations worldwide.
• 😀 Japan represents a promising market for OYO, especially with events like the Rugby World Cup and the Olympics drawing significant inbound tourism, which could create opportunities for OYO to expand its hotel offerings.

Q & A

What is the vision of the company mentioned in the transcript?

The company's vision is to build the world's largest hotel chain by focusing on quality living spaces and providing exceptional hospitality.

How does the company differentiate itself from others in the hospitality industry?

The company emphasizes providing high-quality living spaces and building a brand focused on hospitality excellence, aiming for rapid growth and impact, similar to Amazon's 'Day One' mentality.

What are the backgrounds of the entrepreneurs mentioned in the script?

The entrepreneurs have diverse and impressive backgrounds: one from the UK who sold his company for hundreds of millions of pounds, another from Indonesia who has set up multiple companies for global brands, and one from Dubai who was among the top five in SOCOM.

What is the company's current phase according to the speaker?

The speaker refers to their company's phase as 'Day Zero,' meaning they have just begun their journey and are still in the early stages of growth, with the potential for large-scale impact in the future.

What is the significance of the company's upcoming expansion into Japan?

Japan presents a significant opportunity due to its growing inbound tourism market, with key events like the Rugby World Cup and the Olympics coming up, making it an ideal location for the company's hotel business.

What role does Softbank play in the company's growth?

Softbank is described as an incredible partner, providing significant support, particularly in Japan, where Softbank has had notable success.

What is the company's strategy in terms of capital deployment?

The company focuses on investing capital in competencies, such as setting up skill institutes and research & development centers to build expertise and create jobs in key markets like India and China.

How has the company invested in job creation?

The company has set up 25 skill institutes, creating close to 160,000 jobs, including 100,000 jobs for young Indians and 60,000 jobs for young Chinese.

What is the company's stance on capital utilization?

The company raised $250 million two years ago, and as of now, $200 million of that capital remains on the balance sheet, reflecting a cautious approach to capital deployment with a focus on long-term growth.

What are the future challenges and opportunities mentioned in the script?

The future challenges include the need for additional capital to expand operations and meet growing demand. However, significant opportunities lie in expanding in key markets like Japan, where major events such as the Rugby World Cup and the Olympics will drive tourism and real estate demand.