Oyo, in a press note released on June 20, announced its launch into the Chinese market. The company has ventured into the market with operations in 26 Chinese cities covering 11,000 rooms. Some of the cities are Xiamen, Chengdu, Nanjing, Hangzhou, Kunming, Shenzhen, Guangzhou and Xian.
China is Oyo’s third international market after Malaysia and Nepal. The company had launched operations in the two countries last year. Ritesh Agarwal, the founder and CEO of Oyo, stated that the company decided to enter the Chinese market after its overseas success in Malaysia and Nepal. The company is currently scattered across 150 cities in India, China, Malaysia, and Nepal.
The reason why Oyo chose China is because the country has a flourishing tourism industry and witnesses an inflow of domestic and international tourists. The company believes that its technological innovations will aid the currently fragmented hotel industry of China.
Agarwal said that the mission of the company is to create comfortable accommodation by providing end-to-end transparent experiences to the customers and helping hotel owners up their game in managing their hotels. The company is also actively working on Oyo homes, which will further help in boosting the supply of accommodation across several popular holiday destinations.
As per the RoC filings of Oyo, the revenue shot up from Rs.32 crore in Fiscal Year (FY) 2015-16 to Rs.140 crore in FY 2016-17. The target of the company for the year 2018 is to bring 1.8 lakh rooms under its brand.