How OYO is capturing Asia

Adding another feather to his cap the 25-year-old entrepreneur Ritesh Agarwal, Founder of OYO Rooms has announced the acquisition of a Japanese rental company, MDI. 

A Nikkei Asian Review report cited sources saying that the joint venture of OYO and SoftBank Group in Japan has acquired an 80% stake in MDI for $100 Mn. The deal is said to benefit OYO in leveraging MDI’s strong network and business development capabilities in Japan’s real estate market.

According to the report, OYO will list a section of 37,000 rooms under MDI management on its room rental platform. It will supplement the company’s existing inventory of more than 2,000 rooms in Japan. MDI recently posted revenues of about $1 Bn in the fiscal year ending March 2019. 

In Feb this year, OYO also announced its partnership with Yahoo Japan for a JV, OYO technology and Hospitality, Japan to start off with its co-living services OYO life. And OYO owns 66.1% of the JV. 

In April 2019, the company began its operations. During the launch, OYO had said that it will not charge brokerage fees or additional fees such as security deposits for the service. The monthly rental prices will range from $180 (¥20K)- $7,218 (¥800K) as it targets 1,000 listings in Tokyo’s prime areas by March-end.

The 6-year-old company is backed by big investors such as Soft bank, Lightspeed, Sequoia Capital and has raised 1.7 Billion dollars already.  The company has now listed services in more than 800 cities and 80 countries. 

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Taniya Tikoo

Editor-in-Chief & Co-Founder at ObserveNow. She loves Rumi, traveling, and music. A Mountain girl using the power of words to change the world.

I dream to wake up to a world where I see a thriving Kashmir, a free Palestine and a Free Tibet 

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