Japan’s Telecom and Internet Group SoftBank announced its earnings report for Fiscal year ending March 31, 2016. As per the report, Softbank backed Oyo Rooms, Snapdeal, Ola and Hike have posted considerable year on year growth. Oyo Rooms has grown 15 times in the quarter ended Mach 31 as against the same period a year ago.
Softbank backed Oyo Rooms had participated in a $100 million round of funding in the last year. Oyo Rooms said the booked room night transactions stood at 2.3 million in the January-March quarter 2016, though it’s an overall number and doesn’t account for the cancellation rates that company may be beholding.
Oyo Rooms currently claims to have 68,300 rooms across 5,855 partner hotels in India and targets to triple the inventory by 2016 end. Oyo Rooms has been operating in more than 170 Indian cities. These include major metros, regional hubs, leisure destinations as well as pilgrimage towns. To make its geographical presence outside India, it started operations in Malaysia in January.
“Our team delivered 15x year-on-year growth with 2.3 million booked room-night transactions in Q1 Jan-Mar 2016. We plan to grow deeper in all key business and leisure cities and triple our inventory by December 2016,” OYO Rooms Founder & CEO Ritesh Agarwal said in a statement.
Clarifying about the traction source and profitability, Ritesh stated “95 per cent of our traffic comes from our own sales channels such as app, web and call-centre. The cities driving profitability for us are those that have matured over the last year which include Gurgaon, Delhi, Hyderabad and Kolkata.”
Though the market competition is stiff in domain of Budget Hotel Aggregation, the estimated market volume is huge to attract entrepreneurs for developing their business model.