Core Viewpoint - OYO, as India's first internet company to expand into China, has experienced a rapid rise and fall in the Chinese market, ultimately leading to its exit in 2021, while still maintaining a significant presence in India and planning for an IPO with a target valuation of $8 billion [8][12][50]. Group 1: OYO's Business Model and Expansion - OYO was founded by Ritesh Agarwal, who aimed to standardize and chain low-cost hotels in India, creating a platform that aggregates budget accommodations [5][22]. - The company expanded rapidly in China, opening a new hotel every three hours and covering over 300 cities within 20 months, surpassing established brands [7][34]. - OYO's model involved soft franchising, where it did not charge franchise fees but took a commission of less than 10% from hotel revenues, significantly increasing occupancy rates for partner hotels [25][27]. Group 2: Challenges in the Chinese Market - Despite initial success, OYO faced significant challenges in China, including operational issues and a lack of profitability, leading to a drastic reduction in its presence by nearly 90% from its peak [8][49]. - The company's pricing strategy, which involved initially lowering prices to attract customers, resulted in high turnover and dissatisfaction among hotel owners, leading to strained relationships [42][47]. - OYO's exit from China was officially announced in 2021, with a shift in focus back to India and Southeast Asia [50][61]. Group 3: Current Status and Future Prospects - OYO is preparing for an IPO in India, with a target valuation of $8 billion, and has shown signs of profitability for the first time in its fiscal year 2024 [12][61]. - The company has been actively acquiring properties in Europe and the US to enhance its brand presence and revenue streams [61][62]. - OYO's story continues to attract investment, despite its challenges, indicating a belief in its potential to reshape the budget hotel market [63].