Sector: Hospitality and budget hotels
Founded: 2016
Valuation: $2.5 billion (2021)

Company Overview: OYO, founded in 2013, has become one of the largest hotel chains in India and expanded globally, with operations in over 80 countries. The company’s rapid growth, combined with its unique asset-light business model, presented several financial management challenges.

Challenges encountered:

• Rapid international expansion led to difficulties in managing local financial regulations, tax compliance, and currency fluctuations.
• The decentralized nature of the hotel management system made it difficult to track financial performance across different regions.
• OYO needed to optimize its cost structure while continuing to attract funding from global investors.

Solutions Implemented:

• OYO introduced centralized financial controls and implemented real-time financial tracking systems across all hotels in its network.
• The company automated its revenue management system to ensure price optimization based on seasonality, demand, and competition, driving higher profit margins.
• OYO also employed cost-cutting measures, focusing on reducing operational inefficiencies across its hotel management and workforce.

Outcomes Attained:

• OYO significantly improved its financial visibility, leading to better decision-making at the regional and corporate levels.
• These financial controls helped the company raise over $9 billion in funding from investors like SoftBank, positioning it as a global hospitality leader.
• The centralized financial structure also allowed OYO to sustain its rapid international expansion while maintaining financial discipline.