After focusing on Townhouse by Oyo Branding Hotels, the travel tech start-up is now venturing into Quick-Service Restaurant (QSR) and Food and Beverage (F&B) space with in-house kitchens, carts, and lobby stores at its company-services hotels with a focus on townhouse. This move is expected to generate 5-10% additional revenue for the Softbank-backed company.
Oyo’s Upselling Business Plan
According to the plan, Oyo will offer in-house cooking in 1,500 company-serviced hotels by FY26. Guests can easily order meals from these kitchens by choosing the “Kitchen Services” Option when booking online on the website or app. This move will give Oyo a direct upselling opportunity by utilising their current footfall of room service customers and charging a premium on these services.
In addition to Kitchen services, Oyo announced that it’s opening a lobby and QSR carts under its “Townhouse Cafe” brand, which will be serving ready-to-eat food options. As per OYO, their menu will focus on well-priced, regional cuisine meals and continental meal options.
Launching the test campaign
Oyo has launched its test campaign on Jan 25 across 100 company-serviced hotels across Delhi, Gurgaon, Hyderabad, and Bangalore. Oyo’s Chief Operating Officer, Varun Jain, stated, “The initiative aims to enhance the in-hotel dining experience for guests by offering fresh, convenient, and quality meal options across its network. To support this, OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow”
Oyo Expanding Its Market Presence
The travel tech company has expanded to 30 new Sunday Hotels in the last year, expanding across India, the UAE, Saudi Arabia, and Southeast Asia. Now, Oyo has a global presence of 22,700 hotels,1.2 Lakh homes and more than 91,000 listings. The number of properties under active management grew from 7 in Q4 FY25 to 256 properties in Q4 FY25.
Oyo Becomes The Most Profitable Indian Startup
Once turned in the middle of financial controversies, Oyo has turned the tide to a decisive corner. The global hospitality tech platform has become India’s most profitable start-up for FY 25, posting a record 623 crore profit. This is a 172% increase from last year’s profit, based on the latest unaudited financial results, a big signal in the business transformation of the company.
Read Here to know more about Oyo’s top line and bottom line growth.
Oyo IPO Status
Oyo IPO is now delayed even after the third attempt to list on the stock exchange. Bloomberg reported that Softbank, which holds more than 40% of Oyo, advised the company to keep its IPO plans aside until its financial health shows a stronger improvement.
This is the 3rd time Oyo has deferred its IPO. The first one in 2021. The company planned to get listed in 2024, only to drop its IPO papers again in 2024. But with recent profitability indications, the OYO IPO may soon be around the corner.
