Gurugram-based global hotel chain OYO sets its presence into the term-housing segment with launching a new offering called OYO Living. The unicorn continues to push its expansion plans aggressively after raising INR 7,285 crores from Softbank last month. The hospitality startup will cater to the growing needs for long-term housing for young professionals.
OYO is working closely with the independent house and flat owners as well as large builders to lease out properties. The new offering is set to be rolled out first in Noida, Bengaluru, Gurugram and Pune. Kavikrut, the current Chief Growth Officer at OYO Rooms will lead the new business division.
Talking about the new business, Kavikrut, said, “This is a big opportunity for us and we have done several pilots over the last six months that have shown good opportunity in this space. We are targeting young professionals who are typically in their first or second job and migrating into new cities. While we are leveraging Oyo’s existing expertise from the hospitality business, about 85 people are working solely on the housing rental business.”
OYO is currently valued at $5 billion. The Indian unicorn has already on-boarded more than 36 properties with 2,000 beds. OYO plans to scale this up to 50,000 beds in the next one year. Competing with major players like NestAway, ZiffyHomes, Stanza Living, Zolo and NoBroker, among many others, OYO is targeting young professionals with new jobs.
OYO Living is set to provide a different experience for customers and will be looking to tackle major issues like steep deposits, maintenance of properties and advance rents. OYO aims to provide a seamless experience to tenants and not restrict itself to just a booking service. OYO has already expanded operations to China, Nepal, UAE, UK, Indonesia and Malaysia in less than 12 months.
OYO is currently valued at $5 billion. Earlier in this month, OYO was reported to enter Japan’s hospitality industry ahead of Summer Olympic Games 2020. According to the data available, OYO’s revenue in 2016 was $330 million with a net income of $59 million. OYO has received over $1.5 billion in total funding till date and is backed by investors like Softbank and Greenoaks Capital.