Subscribe Intellectual Indies, press the bell icon and never miss an update. Hello dosto, my name is Sahil Khanna and you are watching Intellectual Indies and today we are going to talk about OYO Rooms. Like i’ve told you that I love the business model of OYO rooms. I know this time it’s in loss But in long term, they are going to in profit. Because basic need of A business is fulfilled by them Let me tell you a story of a person Hitesh Aggarwal, he was travelling in whole india He saw that he was unable to find rooms with affordable price Low price rooms were not good Differences in facilities were there He thought of starting a business With an investment of 1 lakh He invested 1 lakh He has created an empire of 2900 crore. And this company started in 2013. How this business grow so fast? They do receive the investments Investments no doubt helps the business. But you should have a business model. They did one more thing right If you can not fight with your competition then acquire it There was this company called Zo rooms. And they were doing the same business, They bought it Now they are only company in india That’s how they get investment easily Now they are not in that loss as compared to flipkart Limited loss And this loss is decreasing day by day. They have more than 70k+ rooms And tied up with more than 8500 hotels. in more than 230+ cities. This is the recent data One more thing: Early check in They were the first company to do this Basically it was an advantage in early check in Those who don’t know about early check in It means If check in timing is 11am then i am allowed to come after 11 only. If i come before 11 then i have to pay for it But according to their rules, if we book early Then you will come before a specific timing Then you can Condition applied: That room should be free It is not possible if a person is already in that room. They’ll try to give you the room Let’s talk about their business model. Like They acquire hotel rooms. Acquire means You have a hotel, they’ll ask for a room then they’ll decorate them room accordingly They’ll pay the hotels monthly wise. Let’s say your room cost is 2000 And oyo team will decorate it accordingly And then hotel can set a price monthlywise. Because of discount, they give them in 800-900 For calculation let’s say 1000 What happened now If they book only for 15 days They can reach no profit no loss After reaching the 16th day, their profit margin starts. The investment they did in decoration That’s a one time cost Second is Their team tries to negotiate They basically ask hotels to pay for the decoration and stuff and offer profit margin Commission Commission roomwise And commission can be any amount. Now this commission can vary from 10% to 80% According to my sources. I can not tell his name You can see this news that the acquire zo rooms. This is the list of their investors. All the details of funding. In short , their business model is profitable Their loss margin is decreasing day by day. This is a good business model. Now you tell me in the comments below Whether this business according to you is good or not If you’ll check OYO rooms is for innovation They always try to bring something new. IF you want to survive in your business journey Then innovation is important. Best thing is 20year guy build this company. Now he is just 23-24. Means a guy younger than us is a millionaire. 3000crore worth business. Okay friends, video ends here. I hope you liked it If any doubts, do ask me in the comment section. Like share and do tell me What should be our next business model. I don’t keep target of likes but you can like. Bye Goodnight Goodmorning Goodafternoon whenever you are watching this video.