Ritesh Agarwal On Taking OYO To Profits, The Shark Tank Spotlight & More

Ritesh Agarwal, the founder of OYO, a hospitality unicorn giant, just can’t seem to avoid the spotlight — whether it is about OYO’s turnaround to profits, the company’s recent acquisitions overseas, or indeed the uncertainty around an IPO. 

Just earlier this month, OYO forayed into the B2B vertical for travel tech and hospitality, launching a SaaS solution designed to meet corporate travel and event planning needs across India. 

Prior to this, the startup turned heads with its acquisition of G6 Hospitality, the parent entity of popular hotel chains Motel 6 for a whopping $525 Mn in a bid to expand its foothold on the US soil. This acquisition is seen to add INR 2,000 Cr as adjusted EBITDA in FY26.

Besides, the Delhi NCR-based startup has posted its first full year of profitability in FY24 in its 11 years of existence. Agarwal, who is known to call the shots (and we have written about this here), is credited with the startup’s turnaround from reporting a loss of INR 1,286.5 Cr in FY23 to reporting a profit of INR 229.5 Cr in FY24. 

On a personal note, the 30 year-old entrepreneur became a judge on Shark Tank India Season 3, demonstrating his founder-first mindset when it comes to backing early startups.

Earlier this month, Agarwal spoke to Inc42 about OYO’s turn towards profitability, his approach to hiring for the leadership layer, his thesis as an angel investor, among other aspects of being a founder. 

[Edited excerpts]

Inc42: OYO just reported its first complete year of PAT in FY24, and profits have grown in FY25 as well. How did you drive the company to achieve this milestone? 

Ritesh Agarwal: Achieving a full year of profit after tax (PAT) in FY24 has been a significant milestone for OYO, and it’s a testament to the collective effort of our entire team. Following a few difficult years due to the pandemic, it was imperative that we did not lose sight of our main objective: creating value for all our stakeholders.

While we achieved a PAT of INR 229 Cr last year, we’re now focused on reaching our target of INR 600 Cr to INR 700 Cr this year. We’re grateful to our teams and partners for their past achievements, but our focus remains on continuing to improve our earnings per share.

 OYO has always cultivated the spirit of ownership and high bias for action. We call ourselves OYOpreneurs and mean it. 

So it’s just not the leadership, but I would say a cross-section of employees across levels felt that they had the freedom to take calls and achieve outsized outcomes.

I worked closely with the rest of the leadership team, fostering open communication and agility in decision-making. We celebrate small wins along the way, which helped maintain team morale and momentum. 

 More than just results, the idea has always been about building a sustainable, value-driven business that can weather challenges and emerge stronger.
 

Inc42: Over the years, we have seen several promotions in the leadership team of OYO. Could you share what factors you consider when evaluating candidates for promotion? 

 Ritesh Agarwal: Firstly, I have always believed in the power of potential. While experience is valuable, we don’t define roles solely based on years served. We look at an individual’s skills, adaptability, and capacity for growth. It’s about betting on people and their ability to rise to new challenges.

We’ve been fortunate to create a stable leadership team that has seen both highs and lows with the company. Our leaders have an average tenure of over six years in a company that is only a decade old. Many of our leaders have been with us since the company’s inception. In leadership, I always strive for two things: caliber and consistency.

The impact of our leadership development extends beyond OYO as well. Besides, OYO is one of the largest startup creator enterprises with several employees going on to found their own successful ventures after their time with us. We view this as a positive indicator that we’re fulfilling our larger mission of fostering entrepreneurship.

 Inc42: What is your investment philosophy and whom do you model yourself after when it comes to picking the right deals? 

Ritesh Agarwal: My investment philosophy is deeply rooted in my own entrepreneurial journey and the lessons I’ve learned along the way. 

I’m particularly drawn to early-stage startups and founders who have truly immersed themselves in their business. I have a soft spot for founders who have, as we say, ‘gotten their hands dirty’ – those who have toiled and persevered. This hands-on experience often translates into a deeper understanding of their business and market.

Perseverance is key – I want to see how they handle challenges and failures, because business inevitably has its ups and downs. Most of my investments in Shark Tank, for instance, were made keeping these factors in mind.

Attention to detail and self-awareness are equally important; as we say in Hindi, ‘Aap jitni business ki gehrayi mein jayenge, aapka business utna hi oopar jayega.’ [The deeper you go into the root of the business, the more likely you are to grow it]

Inc42: How did you handle the public spotlight after your first few years in OYO and now with being on Shark Tank India Season 3?

 Ritesh Agarwal: I have always thought of wealth creation as being linked to the impact you create, and with the upbringing I had in Rayagada in Odisha, my lifestyle hasn’t changed much. 

My true excitement comes from the chance to surround myself with aspiring entrepreneurs and to play a part in shaping the next wave of Indian innovation. If my journey and insights can help demystify entrepreneurship for the audience or inspire even a handful of young minds to pursue their business dreams, I would say that I have put my recognition to good use. 

Specifically, I am focussed on partnering with founders who can inspire millions of others and further strengthen India’s status as a startup nation.

 Shark Tank India amplified this visibility because it is a popular format that takes your perspectives to the length and  breadth of the country. However, the show has never been about personal fame – it is an incredible opportunity to connect with and support India’s vibrant entrepreneurial ecosystem.  

Inc42: You have been the founder of OYO for over 11 years. Tell us what still drives you. 

Ritesh Agarwal: Our core mission of making quality accommodations accessible to millions around the world and empowering small business owners still inspires me daily.

The dynamic nature of our industry is another driving force. Technology is constantly evolving; consumer preferences are shifting – with many now seeking better experiences – and new market opportunities are emerging. This ever-changing landscape presents continuous challenges and opportunities for innovation, which I find stimulating.

Every day, I wake up driven by a single vision: to build the most impactful premium budget hotel and holiday homes company of our generation.

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Edited By Nikhil Subramaniam