Hospitality firm OYO said its corporate channel has witnessed an 80 percent increase in revenue on a year-on-year basis on account of strong growth trajectory in corporate bookings.
The company currently has a total of over 8,400 active corporate accounts, OYO said in a statement.
OYO founder Ritesh Agarwal to buy back stake worth $1.5B in the hospitality unicorn, gets CCI approval
The company's corporate channel contributes over 30 percent to the total revenues of OYO, it added. The revenue of corporate channel for the calendar year 2019 stood at Rs 459 crore, OYO said.
"The corporate travel segment is a key engine of growth for us and we are seeing strong demand for our standardised and affordable offerings from business travellers across India," OYO Hotels & Homes India & South Asia COO Gaurav Ajmera said.
The company welcomed over 4,000 new corporations in 2019 and their trust in the brand is a testament to the value OYO is creating for its corporate customers, he added.
"As part of our continuous efforts to strengthen the corporate portfolio, we are working to customise our offerings as per their requirements both in terms of in-room amenities or technology and service-based solutions," Ajmera said.
Earlier in September 2019, Ritesh Agarwal, Founder and CEO of OYO Hotels and Home, stated he has signed a $1.5 billion round through RA Hospitality Holdings (Cayman), to further increase his stake through purchase of fresh equity, as well as, buyback of shares in the hospitality unicorn.
In a recent development, the Competition Commission of India (CCI) has also approved the same, giving Agarwal a go-ahead. Further, the founder is fueling in $500 million in his own company.
Factors like the company’s strong growth, improved margins, and improvements in customer experience has led to this landmark agreement, which is one of the firsts in the country.
As a part of the transaction, Lightspeed Venture Partners and Sequoia India are helping Agarwal increase his stake, while remaining invested and committed to the company’s long-term mission, a statement from the chain said.
(Disclaimer: Additional background information has been added to this PTI copy for context)