OYO would see a further reduction in losses this year: Ritesh Agarwal

The founder and CEO says, 'In our kind of businesses, as they scale, revenues continue to increase but cost does not'

Oyo Rooms, the online marketplace for budget hotel stays, raised $250 million from investors, led by SoftBank of Japan, in September. Ritesh Agarwal, founder and chief executive officer, speaks to Ajay Modi on future plans. Edited excerpts:

After the latest funding round, Oyo is seen as more aggressive. There are 50 per cent discounts on bookings. What is driving this?

Our focus has been upgrading and making beautiful living spaces and bringing these to people at low cost. Our unit economics continue to be at 17 per cent net margins. We are able to provide these prices because of the high occupancies.