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OVERVIEW

OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full stack technology that increases earnings and eases operations. Bringing affordable and trusted accommodation that guests can book instantly.

OYO’s full stack value proposition allows OYO to capture a higher revenue share

Full Stack Value

OYO has a superior value prop vs. OTAs such as Airbnb as it offers a full stack of services; more scalable than traditional hotels as it is driven by tech

Underlying Investment Highlights

  • OYO is an Indian hotel and vacation home online booking platform founded in 2013 by Ritesh Agarwal (a prominent 30 under 30 by Forbes);
  • OYO  is  a  fast‐growing  online  travel  booking  platform  catering  to  tourists  seeking budget to mid-standard accommodation (i.e., hotels & vacation homes) at the most affordable price range;
  • OYO is backed by 23 funds and companies such as SoftBank & SoftBank Vision Fund, Airbnb, Didi Chuxing, Grab, Lightspeed Venture Partners, Sequoia Capital India;
  • OYO has attracted more than $2.4 bn in total within 7 full investment rounds (A – F);
  • In addition to online travel booking services, OYO offers multiple technology tools to support hotel guests throughout their stay as well as dynamic pricing algorithms enabling OYO’s partners to capture  higher  market  share.  For  these  services  OYO  charges  10%  from  the  total  revenue  generated globally and 30% from total revenue generated through OYO’s own website/mobile application;
  • OYO successfully competes with giants such as Airbnb, Booking.com, Expedia.com and others. As of today, OYO’s core markets comprise India, South‐East Asia and Europe (vacation homes);
  • OYO’s addressable market is $1.4 tn in capitalization;
  • The Company captures just 5% of India’s travel industry;
  • Within the last funding round in Jan 2021 the Company was valued at $9.4 bn and is expected to reach the valuation range $14-$16 bn by its IPO in Q1 2022. After OYO goes public its market capitalization may reach $50 bn considering Airbnb’s P/S ratio;
  • The entry valuation is $9.14 bn.

OYO’s value proposition for guests

OYO Value Preposition

 

Final Indicators

  • In terms of revenue OYO performed a significant upward trend that lasted for 3 years. Within that time period revenue skyrocketed by almost 10 fold (from $209 m to $1959 m).
  • Despite of 57% drop in revenue to $838 m, because of COVID-19, OYO intends to break-even by the end of 2021.
  • 8 to 10 m people a day are being vaccinated in India. By the end of August 2021 more than 2/3 of its population will be vaccinated, so revenue is expected to reach $1.3-$1.4 bn in 2022.
  • OYO is quite stable. Now the company has more than $600 m on its account, which will last for more than 5 years.
  • In Q2 2021 OYO received debt financing of $660 m through a Term Loan B structure from global institutional investors.
  • To date, the company has reduced the rate of expansion in the North American market. As of 2021, OYO shows the following distribution of revenue by region (%):
Finantial Indicator Region
Finantial Indicators

 

Additional Details

Details Details

RLC Shares Terms

FUND NAME: RLC 1 IC 2 Ltd
ISIN: GG00BMXQWT13
BLOOMBERG TICKER: BMBRW07
DESCRIPTION: NON VTG PARTICIPATING NON RED SHS NPV
FIGI: BBG011S1WXH7
SEDOL: BMXQWT1
CFICODE2015: ESNUFR
FISN: RLC 1/NPV NVTG FPD
PLATFORM FEE: 5%
PERFORMANCE FEE: 20%