OYO, Ola see gradual recovery in business

By: |
September 23, 2020 5:30 AM

Urban towns are doing better in terms of recovery compared with leisure states like Goa and Uttarakhand, where the occupancy levels range about 20-25% or even lower due to restrictions on movements.

We are broad enough to not have to expand any more," OYO founder and group CEO Ritesh Agarwal said at FICCI Global Young Leaders Summit.We are broad enough to not have to expand any more," OYO founder and group CEO Ritesh Agarwal said at FICCI Global Young Leaders Summit.

Indian tech companies seem to be recovering from the pandemic-led disruptions in businesses, though gradually. Speaking at an event hosted by AIMA (All India Management Association) on Tuesday, Ritesh Agarwal, founder & CEO at OYO Hotels & Homes, said the company has managed to reach about 40-42% of its pre-Covid occupancy levels in the country. Urban towns are doing better in terms of recovery compared with leisure states like Goa and Uttarakhand, where the occupancy levels range about 20-25% or even lower due to restrictions on movements.

Globally, OYO is seeing a robust demand in the vacation home segment in Europe while business in Indonesia has also fairly picked up.

Agarwal, however, said it is difficult to predict when the pandemic will end. It can take as little as six months or as much as three to five years, he said.

Bhavish Aggarwal, co-founder & CEO at Ola Cabs, said travel is slowly coming back. The airport travel segment is seeing traction and office commute is doing better than the initial estimates. Recovery has been decent in markets like Mumbai, he added. “Leisure night travel will take time to come back,” Aggarwal said.

Both OYO and Ola maintained that the companies are well-capitalised and there were no immediate plans to raise funds. Ola, however, is aiming for an IPO in the mid-term.

Earlier this month, OYO, which had sent a section of its India employees on leave with limited benefits, extended the same by another six months ending February 28, 2021. In May, Ola let go of 1,400 employees as the pandemic dealt a severe blow to its businesses.

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