Ritesh Agarwal, at just 19, launched OYO in 2013 from his base in India, aiming to standardize budget accommodations for budget-conscious travelers. Now rebranded under PRISM, the hospitality chain has grown into a global player with operations in over 80 countries, offering reliable and affordable stays. This evolution matters as it addresses the surge in travel demand, providing standardized quality in a fragmented market and creating opportunities in emerging economies.
Table of Contents
Early Days and Founding Vision
Ritesh Agarwal was born on November 16, 1993, in Binika, Odisha, India. He dropped out of school to pursue entrepreneurship, starting with a platform called Oravel that focused on curated hotel experiences.
In 2013, he founded OYO Rooms, initially targeting budget hotels in India. The model standardized services like clean linens, Wi-Fi, and air conditioning in unbranded properties, filling a gap for young travelers.
Agarwal’s inspiration came from his own experiences hitchhiking across India. As he shared in various interviews, the idea was to make travel accessible without compromising on basics.
Rapid Expansion and Global Reach
OYO quickly scaled in India, then expanded internationally starting in 2016. By 2019, it had entered markets like the US, UK, and Southeast Asia.
The acquisition of G6 Hospitality in 2024, including Motel 6, boosted its US presence. Today, PRISM serves over 157,000 hotels and homes worldwide.
In FY25, international operations generated 80% of revenue, with the US contributing 24%. This shift highlights OYO’s focus on mature markets.
As Agarwal noted in a 2025 Economic Times report, the US business has been key to diversification.
Financial Turnaround and Growth
OYO faced challenges like losses during the COVID-19 pandemic but rebounded strongly. In FY25, it became India’s most profitable startup with a profit after tax of Rs 623 crore, up 172% year-on-year.
Revenue reached Rs 6,463 crore, reflecting 20% growth. This came from higher occupancy and premium offerings.
In Q1 FY26, net profit hit Rs 200 crore with 47% revenue growth. Adjusted EBITDA grew 27% in FY25.
The company plans an IPO in November 2025, targeting a $7-8 billion valuation.
Revenue and Profit Overview
| Fiscal Year | Revenue (Rs Crore) | PAT (Rs Crore) | Key Notes |
|---|---|---|---|
| FY24 | 5,389 | 229 | Post-pandemic recovery with Motel 6 integration |
| FY25 | 6,463 | 623 | 20% revenue growth; most profitable Indian startup |
Source: Company reports cited in Economic Times and Business Standard.
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OYO Financials FY24: Chart showing operating revenue, expenses, and profit
Leadership Insights and Industry Impact
Agarwal, now a billionaire, draws inspiration from Jeff Bezos. In a recent Times of India interview, he said Bezos’s long-term thinking shapes OYO’s strategy.
The rebrand to PRISM in 2025 signals a premium focus. Agarwal emphasized at the Skift Global Forum that priorities include strengthening existing properties over rapid acquisitions.
This approach has implications for the hospitality sector, promoting tech-driven standardization and job creation in partner hotels.
Broader Relevance and Future Outlook
OYO’s story underscores how Indian startups can compete globally in hospitality, making travel inclusive for millions.
It preserves affordability amid rising costs, benefiting budget travelers and local economies. With IPO on the horizon, PRISM eyes further innovation in serviced accommodations.
Agarwal’s journey from a small town to global CEO inspires young entrepreneurs, proving resilience leads to sustainable growth.
As OYO continues to expand, it sets a model for blending technology with traditional hospitality in a post-pandemic world.
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Last Updated on Tuesday, October 14, 2025 5:29 pm by The Entrepreneur Today Desk
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