Aditya Ghosh Wants To Do A IndiGo At Oyo
Aditya Ghosh, the chief executive officer of hospitality startup Oyo Hotels & Homes in India, is betting on his experience at IndiGo to navigate the current slowdown in the Indian economy.
Citing his experience at IndiGo, which weathered the 2008-2009 financial crisis and went on to become India’s largest airline with him at the helm, Ghosh said there will be takers for cheap but quality services if a company has the right model.
"I was in a similar role at IndiGo. What I saw was that when these kind of circumstances (slow economic growth) happen, a lower cost product at better quality fundamentally wins," Ghosh said on the sidelines of an event in Mumbai on Thursday. Because, even in a crisis, consumers do spend—they may be spending less but never none at all, he added.
"If you can fundamentally change the price point and lower it, with a better cost structure and efficiency and create a quality product, you might end up benefiting.”
Ghosh claimed that in the past 18 months when the Indian economy slowed down, Oyo Hotels & Homes grew on every parameter—including revenue, room supply and even occupancy. Oyo now has 2.5 lakh rooms in India as against 1.75 lakh rooms six months ago, he said.
India’s GDP growth slipped to a five-year low of 5.8 percent in the January-March period of fiscal 2018-19 due to a consumption slowdown. Experts feel the situation is unlikely to improve anytime soon and have forecast muted economic growth in the near term.
Ghosh resigned from InterGlobe Aviation Ltd. to join Oyo as its CEO last year, much before the IndiGo promoter dispute came out in the open. He refused to comment on the spat between Rakesh Gangwal and Rahul Bhatia, the co-promoters of the airline.
On Thursday, Oyo introduced a new programme for its asset owners, offering easier finance and also car buys at lower prices through dedicated tie-ups.
Oyo has in the two months disbursed Rs 60 crore to its asset owners as working capital, Ghosh said. These funds came from the Rs 1,400 crore earmarked for funding growth in the South Asia region.
Oyo has tied up with six non-banking lenders for loans to its partners at better terms, including lower interest rates. It has also partnered with German carmakers BMW AG and Volkswagen AG to take care of the lifestyle needs of its asset owners. There is also a tie-up with Paytm to address insurance needs of these partners.