IPO-bound OYO is a Technology Platform, not a Hotel chain

OYO's self-reinforcing flywheel underpinned by strong local network effects and operating leverage (source: OYO IPO DRHP)

.Value for hotel/storefront: Transform fragmented, unbranded, and underutilized hospitality assets into branded, digitally-enabled storefronts with higher revenue generation potential.

After 12 weeks of joining the OYO platform, OYO-powered hotel storefronts generated 1.5 to 1.9 times more revenue on average compared with the average revenue estimated at independent hotels of a similar size in India, Indonesia, and Malaysia respectively in 2019 (source: OYO IPO DRHP)

In Europe, OYO-powered home storefronts earned an average of 2.4 times more revenue in 2019 compared with the average revenue estimated at an independently managed home in Europe in 2019 (source: OYO IPO DRHP)

Value for Customer: Access to a broad range of high-quality hotels at compelling price points, along with customer loyalty and referral programs, generate significant organic and repeat demand for bookings

OYO benefits significantly from theflywheel effect of the interplay between the supply and demand sides of its technology platform, underpinned by strong local network effects and operating leverage.

This increase in brand equity leads to increase in leverage of OYO which discussing terms with hotels, leading to better marketing ROI (Advertising and sales promotion cost have reduced from INR 10,000 million in FY 2020 to INR 1,400 million in FY 2022) (source: OYO’s DRHP)

OYO's marketing and BD expenses have reduced (source: OYO IPO DRHP)