Ritesh Agarwal (born 16 November 1993) is an Indian billionaire businessperson and the founder and CEO of OYO Rooms, a hospitality brand. He has participated as a panellist on Shark Tank India (season 3) in 2024. Agarwal was ranked among the Top 10 youngest Indian billionaires in the Hurun Rich List of India 2024, with a net worth of $225 million (₹1,900 crore).
Ritesh Agarwal was raised in Titilagarh after being born in Bissam Cuttack, Orissa, India, to a Marwari family. His family ran a little store in Rayagada, Odisha. He finished his education at St. John's Senior Secondary School and Sacred Heart School before relocating to Delhi in 2011 for college.
On March 7, 2023, Agarwal wed Geetansha Sood, a Lucknow local.
"Oravel Stays" is an Airbnb-like service that Agarwal created in 2011.After being advanced via the Venture Nursery program in 2012, Agarwal's business was awarded a US$100,000 grant as one of the 2013 Thiel Fellowship winners.The company launched as OYO Rooms in May 2013.
By September 2018, the company had raised US$1 billion. In July 2019, it was reported that Agarwal purchased US$2 billion in shares, tripling his stake in company.
He appeared in the Forbes 30 Under 30 list for Asia.
In 2023, Agarwal became the youngest "Shark" to appear in Shark Tank India.
Agarwal remained in charge of OYO Rooms in 2024 as the company expanded on its achievements the year before. The business concentrated on growing its footprint in important foreign areas, especially in the US, UK, Southeast Asia, and the Nordic nations, where it had experienced rapid expansion. Agarwal also gained notoriety for his forecast that, during the next five years, spiritual tourism would play a major role in propelling India's travel sector. Data demonstrating a 70% increase in reservations for sacred locations like Ayodhya on New Year's Eve, surpassing well-known tourist sites like Nainital and Goa, corroborated his observations.
According to the company's annual report, OYO announced its first-ever profit after tax (PAT) of ₹229 crore for the fiscal year 2023–2024 in May 2024. According to the corporation, this follows eight straight quarters with positive adjusted EBITDA. From ₹277 crore in FY23 to ₹877 crore in FY24, OYO's adjusted EBITDA increased by 215%.
- Ritesh decided to leave college to follow his idea since he had a strong passion for creativity. He started his business career in 2012 at the young age of 18 with the low-cost lodging website Oravel Stays.
- His latter success was made possible by this venture, which was awarded a grant of Rs 30 lakh. At the age of 19, Agarwal was awarded a coveted seat in the Thiel Fellowship, which was started by Peter Thiel, and received a USD 100,000 grant in 2013 to realize his ideas.
- He took advantage of this chance to turn Oravel Stays into OYO Rooms, a force to be reckoned with in the hospitality sector. The launch of OYO Rooms in May 2013, a major turning point in Agarwal's career, was made possible by the success of Oravel Stays.
Challenges OYO faced
- The travel and hospitality sector experienced significant disruptions due to the COVID-19 pandemic, leading to decreased demand for hotel accommodations and prompting numerous hotels to either close or operate at reduced capacity.
- OYO encountered accusations of fraud, mismanagement, breach of contract, and failure to make payments from certain hotel partners, who claimed the company altered agreements, withheld payments, and manipulated data.
- In several of its markets, including China, Japan, the US, and India, OYO dealt with regulatory challenges and legal conflicts. For instance, a hotel owner in the US filed a lawsuit against the company for $8.5 million, alleging fraud and breach of contract. Additionally, OYO was subjected to tax raids and investigations by Indian authorities concerning suspected tax evasion.
- OYO encountered rivalry from other budget hotel brands, including Treebo Hotels and FabHotels in India, Huazhu Hotels Group and Meituan Dianping in China, as well as Airbnb and Booking.com on a global scale.
- The company experienced internal challenges and workforce reductions as it sought to minimize expenses and optimize its operations. It was reported that OYO laid off or placed thousands of employees on furlough across its various markets during 2020 and 2021. Additionally, several top executives departed or resigned from the organization.
- Due to these difficulties, OYO’s valuation fell from $10 billion in 2019 to $3 billion in 2020. The company also declared a net loss of $510 million in 2021 and faced struggles in securing new investments from either current or prospective investors amid the challenges brought on by the pandemic.
- Shark Tank India Season 3 is gaining traction with viewers, and the ‘sharks’ are making their mark on the show. In particular, the new ‘sharks’ introduced this season have been drawing considerable interest.
- Ritesh Agarwal has received praise for his friendly personality on the program. He mentioned during the Shark Tank episode, “I prefer not to refer to myself as a shark. I would rather consider myself a dolphin. My motivation for joining the show was straightforward; I aim to support entrepreneurs. This has been my objective, and Shark Tank has lived up to my expectations.
- While great ideas hold significance, what truly matters is the founder and the individual behind the business.”
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