Continuing with its strong international expansion, Oyo Rooms has now announced that it is all set to test waters in Japan. The news has come barely weeks after the budget hotel startup announced its foray into the U.K market. The company currently boasts presence in international markets like Nepal and Malaysia and is in the middle of massive international expansion across China.
Reports have emerged that Oyo has already started running pilot project in Japan. It is been claimed that online travel booking website Ixigo is displaying 15 Oyo properties in and around Tokyo city. It is offering these rooms in the range of $61-$620 (INR 4510-INR 45,857).
Interestingly, Japan happens to be the home of Oyo’s largest investor SoftBank. Hence SoftBank will expectedly offer all the required support to help Oyo expand across the Japanese market.
India’s largest budget hotel company is entering Japan barely two years before the Olympics 2020 that are scheduled to be held in the Tokyo city. The company is planning to cash on the tourism boom ahead of the Olympics games.
However, experts claim that Oyo’s quest to get deep footprint in the Japanese market is going to prove immensely challenging one. Not only is the Japanese market overcrowded with competitors, but there is a tremendous oversupply of hotel rooms across the country, experts add.
Last month, Oyo Rooms saw its cash coffers swell as it raised $1 Bn from SoftBank and other investors. The round increased company’s market valuation from $800 Mn to whopping $4 Bn, making it the latest entrant in the coveted unicorn club.
Oyo made it amply clear that a significant portion of the latest funding will be spent for consolidating company’s presence across China. It is not clear whether Oyo will also use these funds for Japan & UK expansion or will plan for another fundraising round.