Oyo Rooms in a plan to build its own cloud kitchen brands

oyo interface - startup article

Key Highlights

Oyo to build its own cloud kitchen brands to become a fully fetched hospitality chain.

Adrak brand is going to be the first cloud kitchen brand of Oyo.

Oyo is also planning to list the brands on food delivery platforms, such as Zomato and Swiggy.

Gurugram based hotel chain startup Oyo after grabbing hotel and rooms business and expanding its business in India, Japan, and China and all over the globe is now planning to build its own cloud kitchen brands to reform its portfolio into a fully fetched hospitality chain. According to three people familiar with the matter, the main idea is to standardize food across Oyo properties. Oyo is also planning to list the brands on food delivery platforms, such as Zomato and Swiggy. One of the person also cited that food is going to be an important source of revenue for Oyo and firm is trying on this with various models too.

Prior to this plan, Oyo used to have tie-ups with restaurants to deliver food to rooms booked on their platforms but now Oyo is going to create their own food brand to deliver meals to their guests and also to deliver at home on orders. Oyo is going to launch its first cloud kitchen brand “Adrak brand”. The firm was also in talks in February to buy cloud kitchen brand FreshMenu to make a successful entry into cloud kitchen space.

Oyo is targeting to provide this facility in those hotels which don’t have an in-house kitchen facility or don’t have any restaurant in the nearby locations. Oyo has now also initiated different verticals including home rental, co-working and co-living segments, besides its hotels and townhouse offerings. 

Oyo has recently raised $1 Billion from various investors including Didi Chuxing and SoftBank Group Corp. Most recently few days before hospitality unicorn has also raised $150-200 Million on series E funding round.

Three years ago when vehicle hailing unicorns Ola and Uber entered into online food delivery market but couldn’t get succeess and give tough competition to food order delivery behemoths Swiggy and Zomato. Now Ritesh Agrawal is looking to make its firm as a complete hospitality brand rather only covering hotel providing facility.

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