OYO Rooms
SoftBank poured $2B+ into a budget hotel chain that expanded to 80 countries before ensuring quality in one.
2013 → 2024
$3.2B
Hospitality/Travel
India
IdeaProof AI Failure Score
Full Analysis
OYO Rooms branded itself as a tech-enabled budget hotel chain, standardizing rooms across thousands of properties. SoftBank invested over $2B, pushing aggressive global expansion to 80+ countries. But quality was inconsistent, hotel partners complained about commission rates, and the company's revenue was a fraction of what was claimed. OYO attempted an IPO multiple times but kept withdrawing. Valuation collapsed from $10B peak to under $3B.
Could This Failure Have Been Prevented?
IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank OYO Rooms.