A 19 year olds , drop-out to India’s largest hotel chain story..
How a 19 year old drop-out started the largest hotel chain in India ?
In our Inspiration series , this article is about Mr Ritesh Agarwal , who is the CEO of OYO Rooms (Budget chain of hotels). Currently only 24 years of age Ritesh has worked really hard to bring to life a concept right from inception to solid execution to form a company currently valued at $400 million
Early struggles & story
Ritesh at the age of 17–18 years , shifted from his hometown in Odisha to Delhi to study. Being a bright student having topped exams , his father expected him to continue this in college. He joined college and in 3 days , he stopped attending and went about founding his company “Oravel”. He had around Rs 60,000 which he used up for staying in different lodges and hotels across Delhi and he realized the problem of how things we’re so disorganized at these hotels with NO standard quality of services. He often tried asking the owners for free stay however his money kept on depleting and soon he was left with no money and landed up sleeping on the stairs of his rented house as the landlord did not let him stay inside. Soon his father came down to meet him and on not finding him in college , he was surprised but after some serious convincing he agreed to give Ritesh one year to try out his business.
Challenges & Smart execution
1.Ritesh asked the owner of a hotel in Gurgaon to let him handle inventory of his hotel and said would work hard to get 95% occupancy. For a long time he played the entire role of a waiter , ball boy , room service and understood the quality of service needed and ran only 1 hotel for 12–16months.
2.He was selected for the Peter Thiel (First external investor in Facebook) sponsorship for dropouts in USA . He came back , worked hard and received his first round of funding from Venture nursery accelerator.
3.After being in 1 hotel for 12–16 months , with the funding received from Softbank , OYO expanded to 26 cities in 6 months time.
4. Today OYO books close to 400,000 rooms per month and provides a similar standardized experience for every booking.
Success and Funding round
1. He is only 24 years of age
2. Counts of Softbank as an investor
3. Larger number of hotels than even the TAJ group. (6500 hotels in 220+ cities)
4. Has amassed over $187.5 Million in 5 rounds of funding.
5. Expanded to Malaysia as well.
Some Famous quotes
⇒”Companies that want to do everything , end up doing nothing ! Start small and then expand “
⇒”Build something that 100 people LOVE than what 1000 might just kind of use “
We respect such young entrepreneurs who are ready to challenge the status quo and create such revolutionary products.
Everyone is not so lucky, so start studying!!
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– Via Studysid team.