Oh, millionaire last year I think our company did over a billion dollars in revenues. We have taken such decisions that no one can do anything better than us. My elder three siblings who were in our house were a complete Indian parents dream. Engineering, business school, everything good, right? I was a black sheep. I actually did not turn 18 when I was first trying to register the company. I didn't have any personal money, friend. Meaning, he used to live in a rain shelter in Delhi. If I knew how hard it was, I probably wouldn't do it now. I always think that if you had some resources. I wouldn't have laughed as much as I have done over the years. If after to tell one thing I tell only one thing which is there is a question that I ask is what is how old were you when you became a millionaire.
Oh, millionaire. I don't remember but I do remember that my first earning was when I was 13 years old.
I sold some SIM cards and made a commission against it.
All right. And what is the most amount of money that you or the brand OYO has made in a single year?
Oh, last year I think our company did over a billion dollars in revenue. So, I think that's good.
That's not good, sir, that's amazing. How did OYO begin and how did the idea of OYO come to you?
Look, I think I always had this perspective of saying that I have to do something new. Right? This is the dream of almost every child in our country these days. I always call it the new Indian dream. The New Indian Dream is that we belong anywhere. I want to build a billion dollar company. I was one of them. I was probably 18 years old, 19 years old, right after high school, those six months are there between school and college. Then I felt that I too could become an entrepreneur. You are very naive and fresh in your mind at that point in time. So that's how I thought. I thought there is a lot of need for accommodation in India. There is no brand which is solving economy mid scale clean room at the right price. Maybe I will do it. I didn't know how hard it was. If I know how hard it was, I probably won't do it now.
What else would you have done if you knew that this is not going to be an easy journey?
I don't know what I do, friend. I think I'm so entrepreneurial in my mind. I can't imagine doing anything else. Maybe I have become like an engineer. Yeah. Maybe I have been an engineer.
What is this your first venture did you start off with something else. Experiment with a few different things and then decide it's okay. This is something that I need to continue with.
Look friend. Sir I was the youngest of four siblings. My elder three siblings who were in our house were a complete Indian parents dream. Engineering, business school, everything good, right? I was the black sheep. Who was just trying to escape? But because I was the youngest, the youngest child is always the most loved by the parents. Give me a do. I always tell them that you are a good venture capitalist. What happens in venture capitalism? If 75% portfolio is fine. So even if 25% did not turn out well, it would have been fine. So I was that 25% to begin with. So I tried doing different things. So as I told you I started selling SIM cards in the summer season. Many children do some side gig or the other. So I used to do that. Then after that, railway tickets were made offline at that time for railway stations. Made it online and started its service. So I kept doing such small things. But my first proper entrepreneurship started when I was 18-19 years old and started Oyo.
And Sir, when you started OYO at the age of 18-19, was that the name that you went with? Was everything sorted from the first day and was it something that you discovered among while the journey went on?
No no friend, look at that time I started first with an online booking website. He tried that for the first one and a half years. He did not go. But the people with whom I had built relationships, the hotel owners, the property owners, they told me that just booking websites would not suffice. If you create a brand, maintain a certain level of quality and operate it yourself, it can generate significant value. So then I pivoted and its brand name became OYO and then the rest is history of course.
That's amazing sir. How much change has happened after starting OYO?
When I started it was an India budget focus. It's been almost 10 years now. We have changed the parent name of OYO to Prism now. Our revenue almost I would say 70 to 80% comes from mid market and premium segment rather than from OYO brand. So there has been a rapid change over the 10 years I think and I think the life of every entrepreneur will be like this. Where do you start if you're at it I my dad used to say he is no more. But he always used to say you and it's a very popular saying which is there is always light at the end of the tunnel. Right all you got to do is keep digging. So as an entrepreneur, I often see people giving up too quickly. I think if you keep digging, there's always light at the end of the tunnel. So, just don't give up. That would be my suggestion.
What are the initial challenges that you had to face while building OYO?
I always say the first three years of building a company are the absolute hardest. Meaning, it doesn't get any harder than that. Which happens for three to five years. I actually did not turn 18 when I was first trying to register the company. That was a problem statement. So brother and friend started the registration through someone. Now that that had happened, they did not live together. So how do you open a bank account? How do you get a payment gateway? Payment gateway? Our friends, there were not as many payment gateway companies in India as there are today. So he would have very basic issues like this, you are my first partner. I remember him saying that he said your enthusiasm, everything is very good. But looking at you it doesn't seem like much will happen. Because I was just so young right. But my situation is so bad that I will try with you. Because it cannot go any lower than this. Whoever goes will go up. And he took a bet on 2012 which is the time when I first registered our company which is when 2011 2012 which is when I just turned 18 and was going to turn 18. After that from 2012 till 2009 I was trying to figure out the first model, it didn't work, so then 2014 onwards is when I started and I have been doing this, what has been the smartest financial decision for you for the company before the financial decision, sign, what was the one financial outcome that changed my life was a Thiel Fellowship, it was my Shark Tank, so Peter Thiel is the founder of PayPal, he gives $1 lakh. I saw him in the movie Social Network. Ok. After that I thought this guy looks good. Maybe it can make me money. Next time I went to the internet cafe. I Upped on His Program and Life Was You Know Life Comes a Full Circle. I became a fellow. I think that $100,000 changed my life. Because I got exposure. Meaning in our Thiel Fellowship there were people like Dylan Field who is the founder of Figma. Figma is a very popular design app. He was the founder of Ethereum. When you come around these types of entrepreneurs, your mind opens up. Right? Which is what I think Shark Tank is doing in our country. Which is we are able to expose to the country perspective we have learnt over them. My life was changed by someone else at some point of time. So, in my opinion, that was the biggest change for our company. What was the biggest financial decision I had to make was just investing in good talent. Bringing good people was the best decision in my opinion.
How much of your personal money did you have to invest to start this company?
I didn't have any personal money, friend. Meaning, he used to live in a rain shelter in Delhi. Right. That too was left out. One day the landlord came and fired him. I always think that if I had some resources, I would not have dilated as much as I have done over the years. So to that extent I had very limited resources. I think a few thousand and to begin with is what I started with. And then so many other people say that the caravan kept moving. People kept joining. Ah, the destination is very far from the destination. But at least the caravan is moving.
